By 2011, 100 of 120 Billion will be freed up from Iraq.
He will reform the way Military contracts are awarded saving billions for the tax payers.
He will improve alliances, allowing Europe, Japan, and others to patrol their own areas of the world instead of the imperialist "world police force".
His energy programs will save money in the long run and make the US Military more independent.
The military will become more able to achieve the diplomatic goals that today's military actions demand through a focus on technological and language education. This will save money by decreasing the physical fighting. "The Hearts and Minds" strategy is possible under Obama.
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Economist say the higher spending and taxes is what the economy needs right now. When consumer demand and business investment go down, while property and financial investments are lower, the economy gets stuck. These are the times when you need massive government spending to jump start the economy. The New Deal wasn't wrong, it wasn't enough. If you look at Europe in the great depression, the reason why they pull out earlier because their governments spent a lot more. The dragging US economy of that time was partly the cause for the rise of Hitler, as the German exports lacked a major market.
Tax cuts only work when taxes are high (they're not), when financial markets are stable, and consumer confidence is high. In a situation like this, you could cut people checks or lower their taxes and they will either a) pay bills or b) save it.
I would cite regulation, but I know you will simply ignore it.
