1. What are the reasons OMB Deputy Director Brian Deese gives for the rapid rate of decline in the deficit (debt-GDP ratio)?
Brian Deese cites a reduction in the cost of healthcare as a reasin fir the rapid rate of decline in the deficit, or debt-GDP ratio.
2. According to Mr. Deese, how would the president's proposed budget for 2015 affect future deficits? Explain.
The President proposes to advance infastructure and continually decrease healthcare costs. By doing these things and investing wisely, the deficit will continue to reduce all the way down to 1.6% in 2024.
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.
Mandatory spending is spending on the programs that are government funded, such as medicare/medicaid and social security.
Discretionary spending is where money is allocated to certain areas each year, differing each year. Last year, the Republicans and Democrats came together to compromise on discretionary spending. Not everyone got what they wanted, but it was a step in the right direction. Now, President Obama has led a program, known as the Opportunity, Growth and Security Initiative, in which Obama puts funds into programs he feels will best help the economy, like Early Childhood Learning and Promise Zones.
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?
There are several. Pros include balancing the budget, limiting spending and making sure enough money goes to the appropriate programs. Cons include but are not limited to, the US typically goes over budget, some compromises can lead to a lack in funding, and sometimes the budget has a shortfall anyway and funding is cut regardless.