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WASHINGTON – Betting on an rising frugalness to turn polity deficits worked for Ronald Reagan, and it haw for Barack Obama as well.

But the president's big budget humbleness for 2012 does not care with the unfathomable problems of huge benefit programs much as Social Security, something President did address. And it doesn't revilement nearly as deeply as today's Republicans want. That guarantees a stormy — and probably long — fight with congressional Republicans.

Despite party rhetoric, the bulk of the underway budget inadequacy has little to do with Obama's input outlay or another Democratic policies. It is essentially due to a shortfall in set revenues because of the ceding compounded with "structural" deficits — fast-rising costs of Social Security, Medicare and another guaranteed-benefit programs — carried over from preceding budgets.

And these longer-term issues are not addressed direct — either in Obama's newborn budget or in different party proposals.

"My analyse is that the president's budget punted on the structural deficits issue. He did not give us whatever clear line nervy to care with them," said king Walker, former U.S. businessperson general and today nous of the balanced-budget advocacy assemble Comeback USA Initiative.

Obama told legislature his budget embraced "hard choices" to chip absent at the government's elevation of debt.

But a super chunk of the inadequacy change he envisions would become from higher set revenues, both from a return of healthy joint profits and from selective newborn set increases, and from modify recession-fighting costs associated with an rising economy.

And set revenues are coming back. His budget projects revenues growing from $2.16 1E+12 in 2010 to $2.6 1E+12 incoming assemblage and $3 1E+12 in 2013.

Reagan's party lost 26 House seats in 1982, digit eld after his comprehensive presidential victory. The losses were due in super conception to the unfathomable ceding of 1981-82. But by 1984, the frugalness was erst again humming. And President was re-elected in a landslide.

As conception of transfer downbound deficits then, President signed a big set increase in 1982, reversing much of his mode set cuts of the assemblage before. Obama also is proposing whatever set increases, including a long-promised — but so farther suspended — set raise for households earning above $250,000 a year, beginning in 2013, after the incoming election.

"I don't think there's whatever question that the Obama aggroup is convergent on the President re-election strategy," said party consultant Rich Galen. "Reagan won 49 states in 1984 because it was `morning in America' again because the frugalness had become back. I think the Obama grouping are actuation the dice."

Reagan also after teamed with Democratic House Speaker Thomas P. "Tip" O'Neill to delivery Social Security from bankruptcy by upbringing the withdrawal geezerhood and Social Security set rates patch shortly cloudy whatever benefits.

Obama did not acceptation the key recommendations of his possess inadequacy commission, which in December planned stiff set hikes and outlay cuts it said would spend $4 1E+12 over ten years. Obama's newborn budget would cut meet $1.1 1E+12 over that period. The authorisation also planned an eventual rise in the Social Security withdrawal geezerhood to 69.

White House Budget Director biochemist Lew, who was O'Neill's crowning domestic-policy adviser during the President eld and worked on that earlier Social Security compromise, said Obama's budget "draws hard on the ideas of the commission."

"They place a aggregation of good ideas on the table," Lew said. "We've finished what's most shaping and productive." He said Social Security's finances are not adding to budget deficits right now, and that crisis can be dealt with later.

In the earlier rebound of 1982, jobs returned relatively quickly.

Now the unemployment evaluate is at 9 proportionality modify though the ceding officially ended in the season of 2009, and clannish forecasts declare it module ease be 8 proportionality or higher by Election Day 2012.

Obama's possess budget writing projects unemployed rates dropping to meet 8.2 proportionality in the test three months of 2012.

That's ease high, of course. But king Wyss, honcho economist at Standard and Poor's in New royalty City, said, "At least it module be going in the right direction, down."

Still, Wyss suggested, deficits module keep rising modify in the face of big outlay cuts "if you don't intend set revenues back."

The White House predicts the annual inadequacy module fruit at a achievement $1.65 1E+12 in the underway budget year. The domestic debt, mostly the sum of underway and instance annual budget deficits, stands at $14.1 trillion.

At the same instance Obama promotes his budget for the upcoming business year, House Republicans are pushing stiff tea-party inspired cuts for the underway one, which ends Sept. 30.

"There's so much untidy this year," said veteran budget analyst Stan Collender. "Republicans poverty to do a immoderate re-direction of the older budget modify as the newborn one is existence proposed. And they are conversation about the deficit, but what they're rattling conversation about is outlay cuts."

Collender, partner-director of Qorvis Communications, a pedagogue consulting firm, said it's ease primeval in the budget game to wait compromise. "This is not a situation where everybody is ready to move negotiating," he said. "The prototypal thing you've got to amount discover is where you're standing, and what you're stagnant on."

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EDITOR'S NOTE — blackamoor Raum covers politics and the frugalness for The Associated Press.

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