On Tuesday, President Barack Obama unveiled his idea to make alterations to federal spending. His change would be a sort of “pay as you go” spending procedure.
Under the plan, whenever the United States Government would increase spending in one area, an equal amount of savings must also be made. By doing so, no further debt would be gained as the amount of spending would always stay consistent.
Similar measures helped resurrect the economy in the 1990’s by balancing out the budget, as is the same hope for Obama’s plan.
President Obama suggests that the plan be officially placed into law rather than simply utilized until the economy regains its balance.
Some Republicans have criticized Obama’s plan. They say it is quite inappropriate that he tries to bring such a law into fruition after he and his administration approved excess spending in the trillions.
However, there is no denying the fact that upon coming into office, the United States economy was going well downhill and that he would have to work hard to fix it. While his motion to save money may be contradictory to his recent spending, it is also necessary to erase the debt accumulated in the previous president’s terms in office.
Whether Obama’s “pay as you go” plan may or may not be accepted by Congress, it is clear that something needs to be done to bring up the downtrodden economy. On that note, why not attempt something that did work in the past?