In Defense of White House Budget Gimmicks

More

The federal deficit has stretched to $941 billion in the first eight months of Fiscal Year 2010, and politicians are getting nervous that all that red ink is starting to stink. That puts the White House in the awkward position on standing behind more stimulus -- which would raise the deficit -- while claiming the mantle of fiscal responsibility. How do you pull that off?

Well, you suggest small-ball reforms -- or, as some critics contend, gimmicks. First, President Obama has proposed a three-year freeze on non-security discretionary funding, which amounts to about a fifth of the budget. Second, he's requested the authority to lightly edit spending bills and send them back to Congress for an expedited vote without amendments. Third, he's asking agencies to make plans to cut 5% of their budget.

These ideas tend draw much mocking from politicians and the commentariat, and maybe it seems a little weird to grow a trillion-dollar deficit and pare it down with limited freezes (like planting a Redwood and pruning it with a nail file). But I see nothing wrong with these ideas. They're non-binding, forward looking, and potentially useful. Do we think government agencies should never have to identify programs they consider marginally unecessary? Is it pointless to even threaten to rein in earmarks with a light veto power? We should be running a large deficit in 2010, and we should be thinking about small ways to improve our medium-term budget.

Jump to comments
Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Get Today's Top Stories in Your Inbox (preview)

Adventures in Legal Weed

Colorado is now well into its first year as the first state to legalize recreational marijuana. How's it going? James Hamblin visits Aspen.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Adventures in Legal Weed

Colorado is now well into its first year as the first state to legalize recreational marijuana. How's it going? James Hamblin visits Aspen.

Video

What Makes a Story Great?

The storytellers behind House of CardsandThis American Life reflect on the creative process.

Video

Tracing Sriracha's Origin to Thailand

Ever wonder how the wildly popular hot sauce got its name? It all started in Si Racha.

Video

Where Confiscated Wildlife Ends Up

A government facility outside of Denver houses more than a million products of the illegal wildlife trade, from tigers and bears to bald eagles.

Video

Is Wine Healthy?

James Hamblin prepares to impress his date with knowledge about the health benefits of wine.

Video

The World's Largest Balloon Festival

Nine days, more than 700 balloons, and a whole lot of hot air

Writers

Up
Down

More in Business

Just In