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 omatic spending cuts that are otherwise poised 
to take effect over the next 10 years.Counting reductions and higher taxes 
that Congress and Obama have approved since 2011, the 2014 budget would 
contribute to a total $4.3 trillion in total deficit reduction by 2023.The 
key deficit reduction elements of the plan incorporate an offer Obama made 
to Boehner in December as both men sought to avert an impending 
"fiscal cliff" of automatic, across the board spending cut and broad tax 
increases.Obama's plan has two central features -- $580 billion in new taxes 
that Republicans oppose and a new inflation formula, rejected by many liberals, 
that would reduce the annual cost of living adjustments for a broad 
swath of government programs, including Social Security and benefits for 
veterans.In his address, Obama said he would achieve deficit reduction by 
making "tough reforms" to Medicare and by enacting "commonsense tax reform 
that includes closing wasteful tax loopholes for the wealthy and well-connected."Obama, 
however, made no mention of the effect his budget would have on 
Social Security and on other social safety net programs, a key feature 
of his proposal and one that drew hostile reaction from some of 
his most ardent political backers.Obama rejected a House Republican budget 
that aims to balance the budget in 10 years with steep cuts 
in domestic spending. His remarks reflected the White House's argument that 
Obama's blend of tax increases and
 ll to 63.3 percent last month. It's the lowest such figure since 
May 1979.The falling participation rate tarnished the only apparent good 
news in the jobs report the Labor Department released Friday: The unemployment 
rate dropped to a four-year low of 7.6 percent in March from 
7.7 in February.People without a job who stop looking for one are 
no longer counted as unemployed. That's why the U.S. unemployment rate dropped 
in March despite weak hiring. If the 496,000 who left the labor 
force last month had still been looking for jobs, the unemployment rate 
would have risen to 7.9 percent in March."Unemployment dropped for all the 
wrong reasons," says Craig Alexander, chief economist with TD Bank Financial 
Group. "It dropped because more workers stopped looking for jobs. It signaled 
less confidence and optimism that there are jobs out there."The participation 
rate peaked at 67.3 percent in 2000, reflecting an influx of women 
into the work force. It's been falling steadily ever since.Part of the 
drop reflects the baby boom generation's gradual move into retirement. But 
such demographics aren't the whole answer.Even Americans of prime working 
age  25 to 54 years old  are dropping out of 
the workforce. Their participation rate fell to 81.1 percent last month, 
tied with November for the lowest since December 1984."It's the lack of 
job opportunities  the lack of demand for workers  that is 
keeping these workers from working or seeking work," says
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