He wants spending on education, roads and infrastructure. But wasn’t it just less than two years ago that Congress passed the $787 billion “stimulus” spending spree to address those needs?
Now we need more spending?
President Barack Obama will call for new government spending on infrastructure, education and research in his State of the Union address Tuesday, sharpening his response to Republicans in Congress who are demanding deep budget cuts, people familiar with the speech said.
Mr. Obama will argue that the U.S., even while trying to reduce its budget deficit, must make targeted investments to foster job growth and boost U.S. competitiveness in the world economy. The new spending could include initiatives aimed at building the renewable-energy sector—which received billions of dollars in stimulus funding—and rebuilding roads to improve transportation, people familiar with the matter said. Money to restructure the No Child Left Behind law’s testing mandates and institute more competitive grants also could be included.
Per the article, the President apparently is going to call for some budget cuts “though they will likely fall short of what Republican lawmakers have requested.”
Republicans have proposed a total of $2.5 trillion in cuts over 10 years. As I pointed out earlier this week, even those cuts would leave us with a $1.15 trillion budget deficit next year. Senator Rand Paul has proposed a budget of his own with $500 billion in spending cuts over the next year, and even that still leaves us with a $900 billion deficit.
If Obama’s proposed cuts don’t even go as far as Republicans want, and if he’s intent on adding even more new spending on top of that, we can fully expect deficits of well over $1 trillion to continue for the foreseeable future.