President Obama Unveils $3.73 Trillion Budget Plan for 2012:
Highlights of the plan include a 5 year freeze on spending.
President Barack Obama has unveiled his new budget for 2012. President Barack Obama sent Congress a $3.73 trillion budget today that seeks to reduce the deficit. Analysts are digging into the numbers but the major aspects of the plan involve largely ignoring entitlement programs like Social Security and Medicare. Entitlement programs may be the most sensitive areas of the budget to tinker with and reductions in spending elsewhere may not have the desired effect of reducing spending long term alone.
Sentiment, Perception & Budget Deficits
President Obama’s proposed plan would cut the deficits by $1.1 trillion over a decade although most cuts won’t start until the next presidential election. The new budget would spend $3.73 trillion in 2012 which is a decrease by roughly 2.4 percent. President Obama is signaling a call for frugality but it may not be enough to change overall sentiment and perceptions about D.C. spending without addressing more critical issues regarding entitlements. The budget does contain some spending increases and addressing entitlements would send a clear message that all bets are on.