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By proposing a two-year extension to the three-year domestic spending freeze he called for a year ago, President Obama sought to quickly counter Republican demands for deeper cuts to shrink government and reduce annual budget deficits....   >>>

By proposing a two-year extension to the three-year domestic spending freeze he called for a year ago, President Obama sought to quickly counter Republican demands for deeper cuts to shrink government and reduce annual budget deficits.



But Mr. Obama, in his State of the Union address Tuesday night, declined to suggest additional ways to rein in the unsustainable growth of Medicare and Medicaid or to resolve the long-term financial problems facing Social Security. He is waiting for the new political dynamic of divided government to sort itself out before inviting Republicans to plunge into the risky business of addressing costly entitlement programs.



Mr. Obama “recognizes we have to do more,” Gene Sperling, the chief White House economic adviser, said before the speech. “But he also recognizes that it’s only going to happen if we create a frame and an atmosphere that allows both houses and both parties to work together.”



For now, the president would extend a partial freeze of domestic spending that he proposed in last year’s address while increasing the government’s economic “investments” in areas like research and education.



**The excerpts above are taken from the New York Times article,"Obama Counters G.O.P. With Plan to Extend Spending Freeze," written by Jackie Calmes. The article is linked below, so do read the economic proposal as presented during the State of the Union address. **