Taking Account of Obama

Barack Obama’s proposed budget represents not only a change in priorities, as always happens with each new presidency, but signals a real change in American politics.

The fate of the budgeted 3.6 trillion dollars will produce the most profound change in the last 30 years: increases in infrastructure, universal health care, empowerment of education, and a shift towards alternative energy sources are the major vectors being invested in to combat the unprecedented collapse of the U.S. economy (which in the last quarter of 2008 saw the biggest decrease in the GDP in 26 years) and hasten the transition to a more modern and sustainable economic model.

It is a very ambitious budget, designing a model for society closer to the European standard than that maintained by the U.S. for the last thirty years. And, perhaps, too optimistic in its aim to reduce the national deficit, currently towering at 1.76 trillion dollars, to little more than half a trillion at the end of Obama’s four years in office.

Still, it must be appreciated that Obama is trying to move past the era of “profound irresponsibility” in all areas of governmental action. He also wants to make good on his campaign promises. Lastly, he admits to the dire and alarming state of the American economy.

Obama claims that his proposed budget is the first step to save millions of jobs and will lay the foundation for real growth. For now, it has the virtue of breaking with the past budgets in such relevant areas as military spending and shows a real shift towards other far more productive areas, as well as assuring that people with lower income and wealth are the least likely to bear the expense.

Raising taxes on those earning over 250,000 dollars is completely reasonable. As well as the promise to withdraw the majority of U.S. troops in Iraq by the end of 2010.

The real test will be the credibility of the whole. The President has already suggested that more money than that already authorized Congress will be needed to stabilize the banks. But fundamental questions still remain unanswered, including those about the multi-million dollar health care reform. As a matter of course, Republicans are not likely to support Obama’s first draft of the budget proposal. The debate has only just begun.