Budget

When the President came out with his budget this week most of the news outlets complained that the Republican House would not pass it. They said it would be DOA (dead on arrival). What they fail to point out is that this is the fourth year that Obama has proposed budgets that the Democratic Senate is afraid to pass. Last year the senate voted against the President’s budget by a 97 to 0 margin. Senate leader Reed will not bring this year’s budget to a vote to prevent embarrassing the President once again. On top of that the senate which is required by law to present a budget has not done so for more than a thousand days and Senate leader Reed says they will not have a budget this year either. The senate is ashamed to propose budgets with trillion dollar deficits, something that does not seem to bother the President.
Last year the US government spent 3.6 trillion and the President’s budget for this year is 3.8 trillion and since income to the government is only 2.5 trillion this is a 1.3 trillion dollar deficit. The debt was 10.6 trillion when Obama took office and this year it will top 16.2 trillion. When the President took office he promised he would cut the deficit in half by the end of his first term.
This is big,” wrote White House director of new media Macon Phillips in a February 23, 2009 blog post, ”the President today promised that by the end of his first term, he will cut in half the massive federal deficit we’ve inherited. And we’ll do it in a new way: honestly and candidly.”
Instead of the 5 trillion that Obama promised by cutting in half what he inherited, it is 16 trillion or three times more
Once again this year the President is projecting that the deficit will be cut over his next term. This is easy to do since most of future spending and debt depends on what rate of growth is projected. If you want smaller deficits just predict a larger rate of growth. You don’t have to be an economist to understand this.
For the first time in history, our deficit now exceeds our gross domestic product. We will not feel the full impact of all of this spending for a couple more elections and by that time the President will be retired and someone else like your children will have to deal with things. Just to aggravate the future situation will be the high inflation that always follows any country that prints money to pay debt.