How many times do you think President Obama will tell his staff “coffee is for closers only” throughout these budget negotiations?
In an op-ed piece for The Huffington-Post, President Obama called upon Congress to increase government spending in the coming year. By how much you ask? Around $74 billion in added spending, which would make it about a 7% increase from last year’s spending bill. President Obama’s basis for this idea revolves around the current health of the economy.
Since job creation is up and the yearly deficit is down, President Obama is requesting many of the cuts that both Democrats and Republicans agreed to during “the sequester” to be brought back into the budget. Many of these cuts included social programs funded by the federal government that many Democrats say should be enacted once again now that the economy is doing better. President Obama insisted that his plan would not add to the national debt (as a share of the GDP) and rejection of his budgetary proposal could mean stagnant growth.
So what did Republicans think of President Obama’s budgetary proposal?
Yeah… it’s hard to imagine they are taking any of it seriously.
Considering the Democrats want money to go to areas like education, infrastructure, and health care – many of the areas that were cut due to the sequester – it’s hard to see Republicans going along with any of it. The area that the GOP and Democrats do agree on is in the military. Don’t be surprised if many of the military programs cut by the sequester end up being revived in this year’s budget. There is also a new tax plan that President Obama hopes to pass to counteract with the new increase in spending, but that’s another matter entirely.
The Obama administration knew that a proposal for $74 billion in increased spending would be immediately shot down by the Republicans, who now control both the House and Senate. After all this is just President Obama’s opening offer and as everyone knows in a negotiation, your first offer is always high.
Get comfortable kids, this budget negotiation looks to be a barn-burner.
(Photo Credit: Amazon.com, Google Images)