1. What are the reasons OMB Deputy Director Brian Deese gives for the rapid rate of decline in the deficit (debt-GDP ratio)? The OMB Deputy Director Brian Deese gives that the rapid rate of decline in the deficit is due to the decrease in the cost of healthcare due to Medicare and Medicaid, making healthcare significantly cheaper.
2. According to Mr. Deese, how would the president's proposed budget for 2015 affect future deficits? Explain. The proposed budget would further reduce the budget deficit, allowing for the money originally sent for healthcare would be used on improvements on education and infrastructure.
3. How does the president’s budget try to build on Congress’s effort to compromise in the allocation of discretionary spending? Provide a description of at least one component of this initiative. President Obama is willing to compromise with Congress to build on their effort in the allocation of discretionary spending. He would allocate about half of the budget towards defense spending, despite that not being his highest priority, in order to prove that he is willing to compromise with Congress.
4. Knowing that you do not have all of the pertinent information to make a fully-informed decision, what do you see as the pros and cons of this budget proposal? A pro of this budget proposal is that Republicans and Democrats, as well as Congress and the President, are getting together to lower the deficit and make changes. While both parties are not getting everything they want, they are compromising in their efforts to reduce the deficit. A con, is that while the President is proposing to allocate funds to pre school education, the results may not be as promising and profitable as he was expecting. Also, Congress is tedious to pass any proposal by the President, so a proposal that has the possibility of losing a lot of money is unlikely to be approved.