The Interactive Obama Budget

The New York Times recently created a cool, interactive breakdown of the Obama Administration's proposed budget for 2011. Please note that the federal fiscal year runs from October 1 through September 30. The budget is subject to congressional after analysis by the congressional Budget Office. The approval process is time-consuming which is why the administration completed its proposal in January.

The federal budget process has many troubling aspects. Agencies have long followed the "use=it-or-lose-it" approach to spending. In other words, saving money only means the agency gets less money next year. That concerns me as a taxpayer.

This feature allows you to distinguish non-discretionary/mandatory from discretionary. Defense is discretionary. Also, another budgetary concern is that most mandatory budget items like Social Security must have annual cost of living increases commensurate with the rate of inflation. Of cruse, the Federal reserve said there was no inflation last year so no COLA for seniors. This did not go over well as you might imagine.

Students may enjoy reviewing which programs enjoy an increase in the budget. Why are some programs costing more while others are getting less money? did the president allude to these changes in any of his speeches?

Finally, note the increase in interest payments to the federal debt. This is the scariest part of the budget!!

E-Books

I found an interesting blog covering how the publishing industry is managing the transition from paper to electronic books. Of course, this could transform the industry and increase profit margins.

However, we must consider the employment consequences. What happens to the printing side of the business? Distribution? How long will the transition take and what will the book industry eventually look like?

Huge Deficits May Alter U.S. Politics and Global Power

"Projections suggest there is virtually no room over the next decade for new domestic initiatives for President Obama or his successors."

This is a fascinating and startling article.