What Shade Lipstick?

The Obama Administration released its budget proposal yesterday for fiscal year 2011 (which begins on October 1st of this year). Keith Hennessey has a pretty good summary of its impacts on spending, deficits and taxes. And, if you are a regular to this site, chances are that you're not going to like what you read.

Interestingly, for someone who a week ago was calling for greater fiscal restraint, Obama appears to be casting a blind eye toward budget deficits. For 2011 alone, the proposed budget deficit is over two percentage points higher this year than last (8.3% v. 6.0%).


Spending under the proposed budget increases as well, up almost 2% of GDP more in 2011 and about a percentage point a year over time.

The budget is based on the following economic assumptions:

• Real GDP growth of 2.7% in 2010, followed by 3.8%, 4.3% and 4.2% in 2013;
• Unemployment holding at 10% in 2010, declining to 9.2% in 2011, 8.2% in 2012 and 7.3% in 2013.

Eeesh. The President is right about one thing - calling something the same, something different really is like putting lipstick on a pig.