Unprecedented, or unremarkable?
Radical, or reasonable?
Foolish, or prudent?
These are just some of the adjectives being used to describe the 2010 budget proposal submitted to Congress by President Obama. The Republican opposition has already begun to refine its red scare messaging, while liberal special interest groups are salivating over the pork that’s coming out of the budgetary oven. The seemingly optimistic economic assumptions underpinning the budget’s spending goals have led some economists to question whether the President can get what he wants without raising taxes, while others are goading him to spend more.
So where does this budget stand in relation to his predecessors’ proposals?
A quick look at previous budget proposals reflects a lack of connection between a president’s initial budget and what ends up happening. President Obama’s proposed increases in receipts might be a bit rosy given the current economic downturn, but they are in line with previous administration’s increases. The same can be said of proposed increases in spending.
Radical, or reasonable?
Foolish, or prudent?
These are just some of the adjectives being used to describe the 2010 budget proposal submitted to Congress by President Obama. The Republican opposition has already begun to refine its red scare messaging, while liberal special interest groups are salivating over the pork that’s coming out of the budgetary oven. The seemingly optimistic economic assumptions underpinning the budget’s spending goals have led some economists to question whether the President can get what he wants without raising taxes, while others are goading him to spend more.
So where does this budget stand in relation to his predecessors’ proposals?
A quick look at previous budget proposals reflects a lack of connection between a president’s initial budget and what ends up happening. President Obama’s proposed increases in receipts might be a bit rosy given the current economic downturn, but they are in line with previous administration’s increases. The same can be said of proposed increases in spending.
Some consistencies emerge….
Receipts forecasted to grow over prior periods, but the actuals usually end up lagging predictions...
Spending is usually forecasted to grow over previous periods, but always increases even more than predicted…
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Concordantly, deficits continue to outpace expectations…
The concern held by many is that Obama's spending priorities will further exacerbate deficits, but if the historical data is any indication, anything can happen. The unique combination of Bill Clinton, a conservative congress and a booming economy resulted in a government that took in more than it forecasted, spent less than it expected, and brought the first surplus in decades.
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