With the country still rebounding from last year’s budget deficit battles, President Obama will release his fiscal 2013 budget (USAToday) Monday, the last of his first term. The budget seeks to cut $4 trillion over the next decade through higher taxes on the rich and government spending cuts, but also will request new major investments in roads, energy, education, and manufacturing. The budget is also expected to include new defense cuts announced in late January, which are discussed in this CFR Backgrounder. The proposal will show a fourth year of $1 trillion-plus deficits and a 2013 shortfall of $901 billion.
David Rogers at Politico says Obama’s election-year budget is aimed at recapturing the hopeful political narrative of his previous campaign, but could “seem borderline delusional to his critics given the debt accumulated by Washington.” The budget also will be released (WashPost) via the government’s new mobile budget app.
Republican presidential candidate Mitt Romney won the Maine caucus (Reuters) Saturday, one day after winning a straw poll at the Conservative Political Action Conference in Washington. Speaking Friday at CPAC, Romney said he would end “unsustainable” spending and touted his plan to save Social Security and reform Medicare.
For the second consecutive year, the majority of Americans believe China is the leading economic power in the world today, by a significant margin over the United States, according a Gallup poll released February 10. Fifty-three percent say that China is the leading economic power, while thirty-three percent chose the United States and seven percent said Japan. The United States still is the larger economy but the poll may reflect voters’ anxiety about the country’s continuing economic malaise.
– Contributing Editor Liriel Higa and Senior Editor Toni Johnson