Making sense of the national budget

When Peter Orszag, the director of the Office of Management and Budget in the Obama administration, visited NYU yesterday, he offered students a unique chance to learn about the federal budget and U.S. economy from the man who plans for it every day.

Orszag, 40, who is the youngest member of Obama's administration, was at the university for a NYU Wagner event called "Rescue, Recovery and Reigning in the Deficit."

"The health of the federal budget is something that certainly has important implications for job opportunities for young people," NYU spokesman Robert Polner said.

During his address, Orszag shared some good news with those who attended: "I'm happy to report that the sense of crisis in the financial market seems to have passed."

But that comment doesn't mean Orszag was entirely optimistic.

"Far too many workers who would rather be earning a paycheck are instead forced to accept unemployment," he said.

Orszag also discussed how college enrollment rates and high school graduation rates are often affected by parents laid off from their jobs. Layoffs also affect a broader pool of people, "the rising generation of workers," he said, adding that the recession hits young people particularly hard.

But following these statements, Orszag gave students a more hopeful message: "The more you learn, the more you earn."

Also discussed was the plan to simplify the FAFSA application, which Orszag said is currently a "huge obstacle for many worthy students who want to attend college."

He also discussed what factors contributed to the current deficit (which he said was $1.4 trillion, or 10 percent of the U.S. economy). He said the deficit was not a result of bad luck but unfortunate decisions, citing the failure to pay for two policies in the past: the Medicare Prescription Drug Bill and the 2001 tax cuts.

The situation is expected to remain the same next year, according to Orszag, who said Obama predicted the next few months will be difficult for Americans.

Orszag also spoke about the current health care debate. He said the administration hopes to move toward a system that focuses more on diet, exercise and stress — "beyond what is traditionally viewed as health care."

Orszag ended his address with a positive look at the changes in the country over the past year.

"I thought his talk provided a fresh perspective on economics that's consistent with the excitement that a lot of young people, and a lot of people in the country right now in general, have for the Obama administration," first-year Wagner graduate student Michelle Krohn-Friedson said.

CAS junior Meb Byrne also enjoyed the discussion.

"He didn't try to dodge anything, which was very impressive," Byrne said. "He had a very comprehensive talk of the economy and where we've been and where we're going."

Ying Lam is a staff writer.