American Morning

Tune in at 6am Eastern for all the news you need to start your day.
February 1st, 2010
01:00 PM ET

Obama budget boosts spending for jobs, education

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/02/01/budget.gi.art.jpg caption="President Obama today announced a $3.8 trillion budget proposal that includes $50 billion to create jobs and a more than 6 percent increase in education funding."]

By Jennifer Liberto, senior writer

WASHINGTON (CNNMoney.com) - President Obama revealed a $3.8 trillion budget for 2011 on Monday that tries to balance two competing goals: continued government spending to boost the fragile economic recovery and controlling the nation's deficit.

"We simply cannot continue to spend as if deficits don't have consequences, as if waste doesn't matter," Obama said at a White House presentation. "It's time to save what we can, spend what we must and live within our means once again."

The budget assumes that the nation's unemployment rate will average 9.2% in 2011 and that the nation's gross domestic product grows by 3.8% next year. It also assumes that some sort of health care reform legislation will pass.

Included in the massive package are $53 billion in tax cuts and $50 billion job-creating measures, including small-business tax cuts, as well as new investments in green technology and infrastructure programs for work on roads and bridges.

Keep reading this story ยป

Related: 8 things you should know about budget


Filed under: Economy • Politics
soundoff (3 Responses)
  1. Sarah Katz

    Am Fix this morning gave a platform to John Avlon to discuss the U.S. Budget. CNN should disclose that Avlon works at the Manhattan Institute. The Insitute receives funding from Koch who also organized and funded "Americans for Propserty" and Americans for a "Sound Economy", the two organizations responsible for organizing the "Tea Party". Mr. Avlon complained that the deficit is repugnant to "independent" voters because it is "generational irresponsibility". Mr. Avlon does not apply the same language to idependent voters/tea party voters in regard to environmental legislation aimed at reducing climate change. Could it be that because Koch Industries is based on petroleum that Mr. Avlon is against any legislationt that would hurt Koch Industry profits, but doesn't really care whether people are able to get jobs???? Shame on CNN for giving a platform to this corporate spokesman.

    February 2, 2010 at 8:50 am |
  2. RICHARD D. DUFFY

    CNN continues to blindly support the socialist government of obama.
    The intent of socialist is to bankrupt the nation and we are well underway.
    All must go to FOX news for the truth and the detail to understand what is happenning to us.
    Please, read, get involved and write your congressional rep and replace them if they refuse to listen.

    February 1, 2010 at 7:21 pm |
  3. Zanos31

    Chetry quote, "You also talk about letting taxes expire for families that make over $250,000. Some would argue that in some parts of the country that is middle class". Maybe due to her pay at CNN Chetry and her neighbors consider themselves middle class.

    Based on the 2007 US Census 1.5 percent of the U.S. public lived in households where the income was $250,000 or higher. The medium US household income is alittle more then $50,000. Chetry should do some fact checking before she releases her ignorance upon the unsuspecting viewers of her show. Trying to make Obama's tax plan to look like a tax increase for the middle class is reporting at its worst.

    February 1, 2010 at 1:51 pm |