2011 Budget: And So It Begins

The administration's announcement last evening that it was planning some type of freeze on nondefense domestic spending as part of its fiscal 2011 budget set off exactly the type of firestorm you would expect when a president proposes to limit or cut spending.

CG&G was, in fact, a perfect microcosm for the debate that is already underway.  Bruce wonders whether this is a replay of 1937, with fiscal restrictions being introduced too early in light of the slow growing economy.  Pete at the same time says that the president's plans are too small and won't have much of an impact on the deficit.

And those are just CG&G bloggers. Economic blogs everywhere were quick to jump on the announcement with much the same points.  I've seen little from either the right or the left that even comes close to applauding the proposal.

Me?  I'm going to reserve judgment until I get a few more details on Monday when the budget comes out.  I'm especially eager to see what other deficit reduction plans, which the administration said last night would be revealed on Monday, are actually included in the budget.  That may well take care of Pete's complaint about this just not being enough.  (Note to Pete: Never say that $250 billion is not much money.)

I also want to hear when these spending changes will take effect.  If it's not until fiscal 2012, then Bruce's concern about it being too soon may be overstated.

I really want to see how the supporters of a budget commission and the deficit peacocks on Capital Hill and elsewhere react because that will be the best indication of whether the Obama proposals have a shot in hell of being enacted.  Their reaction  will also provide the best indication about whether they're as serious about the deficit as they have been saying or whether they've just been preening for the cameras.

As I said in my Roll Call column several weeks ago, it's time to call everyone's bluff.