President Obama belatedly sent his 2014 budget proposal up to Capitol Hill today, containing $3.77 trillion in spending for next year and tax hikes that will affect both rich and poor alike. All told, deficits would still total over $700 billion next year under President Obama’s budget proposal.

In his press conference, President Obama claimed that his spending increases will be “targeted investments in areas that will create jobs right now.” The President rejected the choice between jobs investment and falling deficits, saying that “our deficits are already falling” and that “my budget will reduce deficits by another $2 trillion… in a balanced and responsible way.”

Before Obama is proclaimed a deficit-cutter, it’s important to remember that standard Keynesian economics – that the President subscribes to – would prescribe falling deficits as an economy comes out of a recession. Keynesians like President Obama would be expected to advocate shrinking deficits in an economic recovery. What’s important is to examine how President Obama treats the federal ledger in out years.