U.S. budget deficit may hinder additional economic stimulus actions

The potential new measures are complicated by the fact that U.S. government is expected to run a $1.43 trillion deficit this fiscal year, fiscal 2010, after an estimated $1.825 trillion deficit last year, according to research compiled by the Congressional Budget Office. CBO also forecasts that the federal government will register $974 billion and $633 billion budget deficits in fiscal 2011 and 2012, respectively.

Another possible stimulus measure begin considered: an extension of the $8,000 tax credit for first-time home buyers, which is set to expire at the end of November.

Any stimulus measures that involve cutting taxes or increases spending would obviously increase the deficit, at least short-term.

Economic Analysis: Unemployment remains the nation's No. 1 domestic problem. After health care reform is passed, Congress must take additional action to stimulate the economy and job growth. Also, even though the recession did not start on his watch, the economy and job growth are President Obama's responsibilities now, and the responsibilities of the Democratic Party, the majority party in Congress. They're responsible for righting the U.S.'s 'economic ship of state.'

Further, employer tax cuts will add some jobs, but not nearly enough to meet the nation's workforce needs. Moreover, if the national unemployment rate, currently at 9.8%, continues to rise, political pressure will build for additional action, and at some point the United States may have to consider a federal jobs program - beyond current infrastructure spending - to both create jobs and stimulate demand: there's plenty of work in the nation that needs to be done and an ample number of citizens willing to do it.

Financial Editor Joseph Lazzaro is writing a book on the U.S. presidency and the U.S. economy.