Obama's Budget creeps towards the Senate

By Michael Ruhl, University of New Mexico – Talk Radio News Service

Office of Management and Budget Director Peter Orszag testified before the Senate Committee on the Budget concerning President Obama’s FY2010 Budget. Committee Chairman Kent Conrad (D-N.D.) praised the transparency and initiatives set forward in the budget, which included healthcare reform, a revamping of education, and a shift away from dependence on foreign oil.

Ranking Member Judd Gregg (R-N.H.) criticized the costs associated with the budget. Gregg pointed out that the debt to GDP ratio in 2013 will be 67% and questioned how sustainable such a costly plan could be. He said that it would double the publicly held national debt in 5 years.

Orszag stated that this budget accounts for $2.7 trillion in costs not accounted for in previous budgets, and although it would see some increases in mandatory spending, but this is partially due to baseline changes in this spending. He continued that healthcare reform would help, because one of the problems with entitlement spending is that a disproportionate amount of it is in Medicare and Medicaid.

Boehner: President makes Bush look like a piker

By Suzia van Swol, University of New Mexico-Talk Radio News Service
At a weekly press session, House Minority Leader John Boehner (R-OH), said that there has been too much Republican spending over the last few years but; "If you begin to look at what has happened over the last month, and what's being proposed in the budget, the President is beginning to make [Former] President Bush look like a piker."

Boehner said that the House Democrats would pass a $410 billion appropriations bill, which is eight percent above last years levels and he stated that, “I think we just ought to admit that we are broke, and we can’t continue to pile debt on the backs of our kids and grandkids.” He went on the say that we can’t tax and spend our way to prosperity and that, “the era of big governments is back, and the democrats are asking you to pay for it.” He stated that everyone will pay higher taxes under the President’s plan.

Boehner says that the American people want healthcare at an affordable price but they don’t want the government to tell them what patient/doctor relationships should be.
“They put all this money in the stimulus bill so that they could do comparative analysis; A way of government beaurocrats looking at treatments that patients get and trying to determine which ones are more effective than others. In other words, getting ready to tell doctors and patients that this is the cure, regardless of what the doctor may think.”

Boehner: President makes Bush look like a piker

By Suzia van Swol, University of New Mexico-Talk Radio News Service
At a weekly press session, John Boehner (R-OH) says that there has been too much Republican spending over the last few years but, "if you begin to look at what has happened over the last month, and what's being proposed in the budget, the President is beginning to make President Bush look like a piker."

The Economic Outlook and Budget Challenges

The U.S House Budget Committee held a full committee hearing on the economical outlook and budget challenges.

The discussion focused on the economical problems that are facing America today and the crucial issue of unemployment. The need to create more jobs was discussed and a solution that was presented favored lowering taxes on private business. This solution will could lead to an increase in employment.

A key point that was stressed involved investing in a long term economic strategy, to be able to increase the employment and create sustainable jobs.

Douglas W. Elmendorf, Director of the Congressional Budget Office, presented testimony regarding the state of the economy and issues in developing an effective policy response.
Elmendorf said that America must change its economical policies and make them more efficient to recover from the economical downturn it has suffered.

" The expected severity and persistence of economic weakness have led the great majority of economists to think that both large-scale fiscal stimulus and significant new financial and monetary policies are needed to generate a strong recovery in the next few years. Fiscal policies are most effective if they are timely, are cost effective and do not exacerbate the nation's long-run fiscal imbalance," Elmendorf stated.

He also referred to the difficulties in constructing a stimulus package that is economically effecient and statisfying the broader objectives. Policymakers want to know which people benefit from a policy and what society will receive in return.

Kevin Hasset, Senior Fellow and Director of Economic Policy Studies at the American Enterprise Institute, presented testimony that America's economy has been through bad times before and that the economy recoverd. Hasset also highlights the importance debt could have.

" We have not yet reached the point where skyrocketing debt levels have caused heightened concerns among investors in U.S. Treasuries. If this Committee wishes to avoid testing those waters, it should consider stimulus efforts with genuine steps toward run deficit reduction," Hasset stated.

Gen. Obering and his colleagues confident their budget works

The House Armed Services Committee Strategic Forces Subcommittee held a hearing to examine the fiscal year 2009 National Defense Authorization Budget Request of Missile Defense Programs.

Witnesses from high ranking Defense positions fielded questions about the budget request, including Air Force Lt. Gen. Henry Obering, director of the Missile Defense Agency (MDA). Obering talked about how the budget ensures America will not only continue to have strong short term military capabilities, but will protect us in the “long term as well.”

Obering said the budget request by President Bush for missile defense programs is “extremely modest” in comparison to what it does for our country. Obering mentioned that he hopes the military’s success in doing things with missiles like shooting down satellites continue while still being “operationally affordable” in coming years.