Obama Unveils Tough Austerity Measures

United States President Barack Obama yesterday announced significant spending cuts in his budget plans for 2012. The budget, which Obama hopes will restore some of his economic credibility with the American public, aims to halve the budget deficit by 2013.

The plans aim to cut the levels of government spending by $1.1 trillion over the next decade, although most of the measures do not come into effect until after the end of his first term, as some of the money saved will be reinvested in education and infrastructure projects. Although the cuts are significantly large the plans have been criticised for largely failing to address some of the US Government’s largest financial burdens including Medicare, Medicaid and social security.

Speaking at the release of the budget, Obama said: "After a decade of rising deficits, this budget asks Washington to live within its means, while at the same time investing in our future. It cuts what we can't afford to pay for what we cannot do without."

Despite Mr Obama’s tough talk, the plans have met criticism from Republican politicians for not going far enough. "Americans don't want a spending freeze at unsustainable levels. They want cuts, dramatic cuts. And I hope the president will work with us on achieving them soon." ,” commented Mitch McConnell, Senate leader for the Republicans.