Veronique de Rugy, over at NRO, makes some excellent points about the President's budget proposal. Yes, the budget decreases the deficit in the short term - down to a mere $750 billion - in the long term, we are back over $1 trillion by 2014-15.
Sorry, Mr. President, but that is no belt tightening.
More disturbing, however, is that the budget just sent to Congress assumes 5.1% economic growth in 2011 and 6% in 2012. To say that such growth is optimistic is a serious understatement. Not only is it highly unlikely that the economy will grow year-over-year by 5 to 6 percent, but it isn't even a good idea.
Yes, we need to grow our way out of this recession, but in a developed economy such as ours ideal growth is closer to the 2 to 3 percent range. If we were to grow at 5 percent over a prolonged period, inflation becomes a serious concern and there is also a danger of unsustainable growth - similar to the 1920s or the dot-com bubble or the housing bubble. Growth at too fast a rate can be just as dangerous as a steep decline.
The more we look at this budget, the more irresponsible it becomes.