In yet another amazing coincidence, Obama will delay the release of a report of bad budget news until after Congress recesses. Gee, is there any wonder he wants them to pass lots more spending bills before then?
When you read through this article, you realize the news must be very bad and people are already starting to turn on Obama. And the last excerpt below shows the administration is still trying to use the excuse that it’s Bush’s fault. I’d say that horse has already been beaten to death and people are no longer buying it at all.
The administration’s annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in President Barack Obama’s budget in February and update in May, and that could complicate his efforts to get his signature health care and global-warming proposals through Congress.
The release of the update — usually scheduled for mid-July — has been put off until the middle of next month, giving rise to speculation the White House is delaying the bad news at least until Congress leaves town on its August 7 summer recess.
The administration is pressing for votes before then on its $1 trillion health care initiative, which lawmakers are arguing over how to finance.
“Instead of a dream, this routine report could be a nightmare,” Tony Fratto, a former Treasury Department official and White House spokesman under President George W. Bush, said of the delayed budget update. “There are some things that can’t be escaped.”
Obama’s current forecast anticipates 3.2 percent growth next year, then 4 percent or higher growth from 2011 to 2013. Private forecasts are less optimistic, especially for next year.
Any downward revision in growth or revenue projections would mean that budget deficits would be far higher than the administration is now suggesting.
The new budget update comes as the public and members of Congress are becoming increasingly anxious over Obama’s economic policies.
A Washington Post-ABC News survey released Monday shows approval of Obama’s handling of health-care reform slipping below 50 percent for the first time. The poll also found support eroding on how Obama is dealing with other issues that are important to Americans right now — the economy, unemployment and the swelling budget deficit.
The Democratic-controlled Congress is reeling from last week’s testimony by the head of the nonpartisan Congressional Budget Office, Douglas Elmendorf, that the main health care proposals Congress is considering would not reduce costs — as Obama has insisted — but “significantly expand” the federal financial responsibility for health care.
Orszag, making the rounds of Sunday talk shows, insisted the economy at the end of last year, which the White House used for its optimistic budget forecasts, “was weaker at that time than anyone anticipated.” He cited a “sense of free fall” not fully recognized at the time.
“It’s going to take time to work our way out of it,” the White House budget director told “Fox News Sunday.”
Even as it prepares to put larger deficit and smaller growth figures into its official forecast, the administration is looking for signs of improvement.
“If we were at the brink of catastrophe at the beginning of the year, we have walked some substantial distance back from the abyss,” said Lawrence Summers, Obama’s chief economic adviser.