Obama's plan to control spending and the deficit
"The plan Obama will propose breaks down as follows:
- Freeze discretionary spending on non-security-related programs and government agencies whose budgets are set annually by Congress. Affected programs could include subsidies for farmers, child nutrition, and national parks.
- Exempt from the freeze would be budgets for federal entitlement programs like Medicare, Medicaid, and Social Security, as well as the budgets for the Pentagon, the Veterans Administration, the Department of Homeland Security, and foreign aid.
The administration claims this will save the country $250 billion over the next decade, or about 3% of the $9 trillion deficits the U.S. is expected to accumulate over that period.
Conservatives have mocked the freeze as not doing nearly enough to get to the root of the country's economic problems. The right-leaning blog RedState.com chided the effort, saying that it would have "virtually no impact on the financial standing of the United States of America." On her Twitter page, right-wing commentator Michelle Malkin compared the freeze to "promising to slow down from 250 mph to 249.9." House Minority Leader John Boehner likened the plan to "announcing you're going on a diet after winning a pie-eating contest."
Liberals aren't happy either, arguing that less government spending will slow economic growth, and that cutting government services will harm those in need. New York Times columnist Paul Krugman labeled the freeze "a betrayal of everything Obama's supporters thought they were working for." Kevin Drum of Mother Jones echoed those sentiments, writing that "the liberal base has yet another reason to be disgusted with Obama." MSNBC host Rachel Maddow went even further, saying that the "counterintuitive" plan is a "completely insane" one that violates the basic principles taught in any "101 level college econ class."