Michael Ettlinger on Presient Obama's Budget Blueprint?

What does President ObamaÕs budget say about his administrationÕs priorities?

President ObamaÕs budget blueprint tells us a lot about the presidentÕs priorities for the economy. Priority number one is getting the economy moving againÑcreating jobs. Coupled with that is building the economy for long-term growth. ThatÕs why we see these intense investments in energy, in health care, and in educationÑinvestments that both create short-term jobs so we can get out of the economic hole we are in, and also set the stage for longer-term economic growth.

How does the budget balance economic recovery and the deficit?

The budget balances economic recovery and the budget deficit by accepting very large deficits in the short run for the next two years, and this is very important actually in order to get the economy moving again. The budget is going to be out of balance for the next two years, the revenues for tax collections are very depressed because of the depressed economy, and we need to make investments to start creating jobs and get the economy moving again. Starting in three years, thereÕs still a budget deficit under the PresidentÕs long-term projections, but theyÕre much more modest and much more manageable. They need to be addressed, but that isnÕt critical for either our short-term economic growth or long-term economic growth.

Is this a budget that Congress will be able to pass?

Congress will have its say in this budgetÑtheyÕre not going to take the presidentÕs budget and just pass it. And thatÕs how it should be. They have a lot to offer in creating a budget that serves the countryÕs needs. WhatÕs important though is that the certain essential features of the budget are maintained. The budget should run large deficits over the next two-years to provide stimulus to the economy, to get the economy growing again. In the long term we need to make the investments in health care, energy, and education, with the budget contains. And in the long term, we need to get to back to manageable budget deficits.