President Obama announces plan to reduce budget deficit (video)

President Obama is focusing heavily on the economy and job creation. During his weekly address this morning, heannounced his plan to reduce the budget deficit and specified three steps to achieve the goal. The three steps include PAYGO, a discretionary spending freeze, and a bi-partisan Fiscal Commission determine additional strategies to reduce the budget deficit.

President Obama spoke about PAYGO and said that it was time government made sacrifices and didn’t buy everything it wants. He said, “I’m pleased that the Senate has just restored the pay-as-you-go law that was in place back in the 1990s. It’s no coincidence that we ended that decade with a $236 billion surplus. But then we did away with PAYGO – and we ended the next decade with a $1.3 trillion deficit. Reinstating this law will help get us back on track, ensuring that every time we spend, we find somewhere else to cut.”

To ensure additional funds for job creation and tax cuts for the middle class, President Obama announced that he has proposed a spending freeze. He stated that Medicare, Medicaid, and Social Security would not be affected by the spending freeze.

“I’ve also proposed a spending freeze, so that as we increase investments in things we need, like job creation and middle class tax cuts – we cut spending on those we don’t, like tax cuts for oil companies and investment fund managers, and programs that are redundant, obsolete, or simply ineffective. Spending related to Medicare, Medicaid, and Social Security will not be affected – and neither will national security – but all other discretionary government programs will,” President Obama said.

While speaking about the bi-partisan panel that would be part of the Fiscal Commission, to ensure that the budget deficit is reduced, President Obama stated it is time to stop arguing and start working together. The President said, “This past week, 53 Democrats and Republicans voted for this commission in the Senate. But it failed when seven Republicans who had co-sponsored this idea in the first place suddenly decided to vote against it.

Now, it’s one thing to have an honest difference of opinion about something. I will always respect those who take a principled stand for what they believe, even if I disagree with them.

But what I won’t accept is changing positions because it’s good politics. What I won’t accept is opposition for opposition’s sake. We cannot have a serious discussion and take meaningful action to create jobs and control our deficits if politicians just do what’s necessary to win the next election instead of what’s best for the next generation.

I’m ready and eager to work with anyone who’s serious about solving the real problems facing our people and our country. I welcome anyone who comes to the table in good faith to help get our economy moving again and fulfill this country’s promise. That’s why we were elected in the first place. That’s what the American people expect and deserve. And that’s what we must deliver.”
You may view the full video in the player below.

President Obama Photo credit: Charisse Van Horn