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The political football that is the US economy


economy

The political football that is the US economy

President Barack Obama has unveiled his election-year budget proposals which include aggressive spending on infrastructure to boost US growth and a minimum 30 percent tax rate for millionaires.

It will not ever become reality as his Republican opponents plan to block it in Congress.

That gave Obama an opportunity to take a swipe at them as he announced his plan: “American manufacturers are creating jobs for the first time since the 1990’s, the economy is growing stronger, the recovery is speeding up, and the last thing we can afford to do right now is to go back to the very policies that got us into this mess in the first place, we can’t afford it.”

As the economy becomes even more of a political football, Obama wants to spend $800 billion (605 billion euros) on investing in manufacturing, extending tax breaks to spur hiring, and building and improving infrastructure including roads, railways and schools.

His plan would defer major spending cuts until the economy is on a firmer footing.

The Republicans, as they prepare an election battle over taxes, spending and the size of the government, countered that the US is already too deep in debt so that deficits and spending have to be cut now.

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