January 26, 2011

President's Budget Proposals are Like Using a Bucket to Bail out the Titantic

David M. Primo

Senior Affiliated Scholar
Summary

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The CBO numbers released today show that the President is presiding over a sinking budget ship. And many of the proposals, like a partial budget freeze, are as effective as using a bucket to bail out the Titanic.

His proposals reflect a lack of leadership. America is in the midst of a budget crisis, and by not directly taking on entitlements, the President is demonstrating he is not ready to take charge of budget reform.

The undercurrent of his speech was ‘promoting America’s success,’ but many of his proposals won’t help America prosper. America’s success comes from individuals, and by being willing to punish those who are successful with higher taxes, you’re short-circuiting the very process that produces economic growth.

To really promote America’s success, the President should stop paying lip service to the idea that government should get out of the way of business, and start acting like it. Right now he’s behaving like the micro-manager in chief, and seems to want to direct what American businesses should do.  For instance, businesses, not the government, should direct investments in green technology.