Sunday, January 16, 2011

High unemployment and high deficits the current decision-making dilemma Obama.

<P> High deficits and high unemployment, both the U.S. economy to run a serious risk, but also the U.S. public attention and a focus of the struggle between the two parties. .President Obama Matan Chen, if you can not effectively solve the problem of high deficits, the U.S. economy may fall into "double-dip" recession; in high unemployment problem is solved, the U.S. can not be said out of the economic crisis. .</ P> <P> "two high problem" caused by the American Society of Obama's "confidence crisis", Obama is the recent decline in public support of a signal. .However, in State of the Union stressed that "fiscal discipline" less than a week, Obama made on February 1 but a record 3.83 trillion U.S. dollars in fiscal year 2011 budget. .One paradox, but also is indicative of the current decision-making dilemma for Obama. .</ P> <P> estimated expenditure from Obama, despite the high unemployment and high deficit is a dilemma of topics, but his current policy, or in response to high unemployment as the top priority. .</ P> <P> reason why Obama will focus on security of employment on the budget, which is the current high unemployment rate because the U.S. is becoming the biggest test of his administration. .Americans can not find work, Obama paid a political price. .Massachusetts Senator recent elections, "Obama effect" passed their prime, the little-known Republican candidate to win this key seat, thereby changing the Senate's political landscape, to show profound changes in American public opinion. .</ P> <P> Therefore, in the recent State of the Union, Obama emphasized that he understood the pain of Americans in 2010, "Employment issues will be top priority." .At the same time, rising costs and economic slowdown of the decline in revenue, resulting in red Diego U.S. deficit. .</ P> <P> high for the high deficit, the White House budget director believes that this is in response to the economy, promote employment of last resort, the Government must take steps to economic recovery in the high deficit and seek balance. .In the current circumstances, the U.S. deficit can only be a "soft landing", otherwise there will be too hasty to reduce the deficit in 1937 caused by the economic downturn the risk of again. .</ P> <P> Obama said the 2012 fiscal year, the U.S. deficit would be expected to fall to 828 billion U.S. dollars. .It should be noted that this year happens to be seeking re-election year of Barack Obama. .But many economists also pointed out that this "optimistic" forecast, is a fully sustainable recovery in the U.S. economy based on the results of the best - according to the Obama administration's forecast, this year the U.S. economy will grow 2.7 .% next year, grew 3.8%, followed by the next three years will increase by more than 4%. .Regardless of the existence of the test results of this ideal, even if expectations can actually be achieved, the scale of the U.S. deficit in 2012 was still much higher than before the outbreak of the financial crisis, more than 4,000 billion dollars in size, can be said that in the short term, the United States is still not out of the "high .deficit era. " .</ P> <P> despite the administration in every possible way to explain, but high deficits the U.S. economy is clearly a serious risk. .A huge deficit and the current accommodative monetary policy, the cumulative risk of hyperinflation, when should accidentally, the U.S. economy Jiangzai Pro danger. .Obama had to always be honest, if you can not effectively solve the problem of high deficits, the U.S. economy into a "double dip" recession possible. .</ P> <P> related to legal proceedings by the United States, Obama's budget must be approved by Congress, is currently in the Senate, due to electoral victory in Massachusetts, the Republican Party has made available the filibuster of the 40 seats. .Around the future high spending and high deficits, the United States is bound to be fierce political tug of war. .</ P>.

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