Battleground Budget

MILAN – The world’s developed economies, of which the United States is by far the largest and systemically most important, face a range of difficult political and social choices. President Barack Obama’s proposed US budget acknowledges and addresses those choices and tradeoffs directly and fully for the first time in the post-crisis period.

Obama’s proposal is an important, honest, and politically courageous document. The debate that follows will largely determine whether the US shifts toward a strong, inclusive, and sustainable pattern of growth and employment, and how the burden of moving to such a path will be shared by Americans of various ages, educational levels, incomes, and wealth.