By now, the nation should have received the national budget forecast for next year, but The White House has delayed the announcement until mid-August.
Some analysts speculate that the release of a less-than-optimistic budget update will put a hitch in President Obama's plans to reform the nation's $2.5 trillion health industry by August. House Democrats are currently pushing for votes to pass the reform. Obama also has a global warming bill that he is trying to convince legislators to support—if the budget update paints a sour picture of the economy, the President may lose credibility with lawmakers.
The federal government's projections included a 9 percent peak for unemployment sans stimulus package. Though a $878 billion stimulus package had been passed, unemployment figures reached 9.5 percent in June and persist until now.
Obama's current forecast anticipates 3.2 percent growth in 2010 followed by 4 percent or higher growth in the next three years. As of last week, however, the GDP growth is -5.56 percent, according to the latest figures by the Bureau of Economic Analysis.
Despite the delay in announcing budget projections, the health care plan might not be on a straight path to passage. On Tuesday last week, House Democrats put forth a 1,000-page health plan proposal that includes a government-paid insurance option with rates that compete with private providers. The plan is expected to cost $1 trillion, and more government spending when the stimulus package seems to be failing to curb the economy's slide would be hard for many lawmakers to justify.
As of last week, House Democrats were pushing for a vote on the bill on Thursday. However, Obama has let up insisting on a mid-August deadline, according to a Politico report. This comes after six senators wrote a letter to the Senated majority and minority leaders, urging them to avoid hastily putting together a plan in order to make the self-imposed deadline.
The Senate will break on August 7 for its summer recess and the House on July 31.
|
|
|
