America is in its worst economic state since the Great Depression of the 1930s. The economy is in shambles. The federal deficit in 2009 was $1.5 trillion, over five percent of GDP, and the deficit is expected to increase during this fiscal year and the next. Something needs to be done now.
Earlier today President Obama outlined his plans for America's budget over the next ten years. Faced with a deficit of $1.5 trillion that is still growing, he has planned some drastic changes for the budget. Firstly, he has proposed a freeze on all domestic spending. Although, this excludes national security spending and troubled health care costs. The spending freeze is a good first step to reducing the deficit, but it is not nearly enough, especially when national security will continue to rise, as we are still involved in two costly wars. The President has plans to decrease spending in the areas of health care, through health care reform (if it ever passes), military projects, such as the superfluous F-35 fighter jet, and energy costs, through implementation of more green technology. He also has plans to increase funding in some areas, particularly in the area of science and research. This is a wise investment, though, because advances in science and technology will help the country as a whole. One of the biggest changes Obama plans to bring is to take away the horrendous Bush tax cuts for the wealthy. by eliminating the Bush tax cuts, the government will be able to bring in much more money, helping to reduce the deficit. On the other hand, Obama has proposed a middle class - those making under 250,000 annually - tax cut. While this may prove somewhat detrimental for the government, it should certainly help the economy, by allowing for more spending by the middle class, which means more money circulating in the economy. All of Mr. Obama's plans seem reasonable at the moment and one can only hope that they do as planned and help to reduce the deficit, but America's future is still looking very grim.
The Obama administration's projections show that even in 2020, the deficit will still be around four percent of GDP, an unacceptable number. Ten years from now, America will still have a trillion dollar deficit. President Obama has plans to create a bi-partisan debt-reduction committee, but considering the current state of politics, this is also very unlikely. Polarization in government has reached a new high. It seems unlikely that Mr. Obama's budget be approved. The Republicans in the Senate are foolishly trying to filibuster legislation before it even reaches the floor of the Senate. If this continues, the Senate would be at almost a complete standstill. America's economic problems are bad enough, but if the state of politics remains as it is today, there isn't much hope for America in the future. Both politically and economically, America's future is looking grim.
There is no end in sight for the economic troubles of this country. The political scene continues to become more and more polarized each day. Though some individuals in government may try to help resuscitate the country and bring it back to better days, the outlook is looking grim. One can only hope for a better future for America, and this is certainly what everybody wants, but this may not be what we get.
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