Beneath Obama's Budget Proposals Is A Depressing View Of The Future

BI - Reuters ^ | 2-2-2015 | Jason Lange and Howard Schneider, Reuters

[blam]

Jason Lange and Howard Schneider, Reuters
Feburary 2, 2015

WASHINGTON (Reuters) - Beneath President Barack Obama's plan to fight income inequality lies a gloomy view of an economy that is growing slower and creating fewer rewards for its workers than it did in much of the last century.

In a budget proposal unveiled on Monday, the White House cut forecasts for an array of economic variables, depicting less growth, weaker inflation and lower interest rates than officials expected only a year ago.

This comes despite an unemployment rate that the Obama administration expects to hit the 5.2 percent level considered to be roughly in line with full employment sometime this year.

The administration's take on the economy moves it closer to the growing view among economists that the United States could be stuck in a prolonged period of stagnation.

"In the 21st century, real GDP growth in the United States is likely to be slower than it was in earlier eras," the budget proposal says.

Obama's $3.99 trillion budget plan for fiscal 2016 would mark a spending increase of about $240 billion from the current year.

The economic vision presented in the plan is all-the-more pessimistic given that it incorporates the impact of higher spending on infrastructure and education, as well as overhauls of tax and immigration laws. Many of those proposals are unlikely to pass the Republican-controlled Congress.

Even with these measures, which are aimed to counter rising income inequality, weaker growth would leave the economy about $500 billion smaller in 2020 than the administration projected a year ago. The administration expects the share of national income going to labor - as opposed to capital - to hold near historic lows for years to come.

(snip)

[Opinionated Blowhard]

lies a gloomy view of an economy that is growing slower and creating fewer rewards for its workers than it did in much of the last century.

And the answer is to pile on more spending and regulations as if that has zero correlation with whether the economy grows. He is a disaster. He really doesn't think that his expansion of the government is weighing down the private sector and its ability to create jobs. He is suffocating it, and his answer is more suffocation.

[tet68]

In a budget proposal unveiled on Monday, the White House cut forecasts for an array of economic variables, depicting less growth, weaker inflation and lower interest rates than officials expected only a year ago.

And why not, it’s what Obama has been working toward
for the last six years...

[LMAO]

You said...
“The most depressing thing of all is the fact that we all know that the GOP will bend over and give Dorkbama his budget.”

No they won’t. And he knows it

[ProtectOurFreedom]

That is an excellent essay. Did you just write that to post a reply to this article?

[Wuli]

Obama’s neo-Marxist/Socialist/Progressive solutions and his rhetoric about them find a large populist audience, but they solve nothing while pretending simply bad markets and capitalists are at fault.

And yet, the job-wage problems are to a very large degree structural, driven by new technologies that while continuing technology’s normal “creative destruction” are destroying more jobs than the new jobs they are creating, whether they are created directly or indirectly due to the impact of new technologies.

Solving that part of the issue is going to prove difficult, and it’s going to take more than just new private investment. And, it will take more than just more education or more investment in education because, the state of the structural job deficit and wage issue remains: education for doing what??

[blam]

Democrats Won't Like Why The Job Market Is So Hot

[virgil]

Full employment. Right. These people are on crack.

[cherokee1]

Winston started seeing it earlier than I did-—but he’s older. I started seeing the slide about 1975 right about the time Nixon was itching to sell us out to China. I’ve believed we were heading for a 90-10 economy wherein the “90”just barely has a pot to pee in. That’s my story and I’m watching others prove it-——

[mcshot]

The truly tragic thing is that the MSM buys it. Never would I have believe what is happening was even possible. The love for our Country has evaporated based on the fires of liberal lies and nonsense. Their behavior is treasonous and I hope the whole damn bunch pay for their destruction of this once great nation.