Reality check on Obama's deficit plan

[OnePimpTiger]

CNNMoney: Reality check on Obama's deficit plan

A main question will be whether Obama's proposals can reduce the deficit as much as the administration estimates they will: $2 trillion over 10 years.

Orszag bases that deficit-reduction estimate on four main factors: economic recovery, collecting more revenue from high-income taxpayers, curbing corporate tax breaks and winding down the war in Iraq.

Given how unprecedented the downturn has been and the uncertainties in the geopolitical situation, several of the factors the administration is relying on to deliver its deficit-reduction promises are far from guaranteed.

It seems most of the plan requires on a lot of "ifs"...and some of them are big ifs.

[daniel3417]

Obama and I don't differ to much on the desired result: Deficit reduction. In fact, there should be no deficit, ideally. If it was possible for the Government to declare bankruptcy, they would have many years ago. But no, they just raise taxes on the People who work to stay out of debt. Pathetic.

I think Obama's plan addresses the effects of the problem, rather than the problem itself. The problem itself is so-called "greed" and an act passed by Jimmy Carter in 1977 urging banks to accommodate all borrowers whenever possible. This will happen again unless you allow the free market to dismantle the bad companies and rebuild the good companies.