Paul Krugman reacts to the new Obama budget:
The New Obama Budget: There was an old Washingtoon, probably from the mid-1980s, in which Democrats meet to plan their new centrist strategy — which consists of tax cuts for the rich, reduced spending on the needy, and big defense budgets. “But how is this different from the Republicans?” asks one member of the group. “Compassion,” replies the leader. “We care about the victims of our policies.”
That’s pretty much my initial reaction to what we know so far about the Obama budget. It’s much less awful than the Republican proposal, but it moves in the same direction: listening to the administration, you’d think that discretionary spending, not health care, is at the heart of our long-run deficit problems — and you’d also think that the job of rescuing the economy was done, with unemployment still at 9 percent.
It could be worse — the GOP proposal is — but it’s hardly something to cheer about.