published Wednesday, February 16th, 2011

An irresponsible budget plan

President Barack Obama has proposed a $3.73 trillion budget which, even if its extremely unrealistic economic assumptions pan out, would add $7 trillion to our $14 trillion national debt over the next decade. And we already face a record $1.65 trillion deficit this fiscal year — the worst since we had to borrow to finance our victory in World War II!

We do not expect the president and Congress to balance the budget all of a sudden. But when we are in a financial hole, with the economic dirt caving in around us, shouldn’t we at least avoid digging deeper still?

Do you want our debt to grow to $16.7 trillion by Sept. 30, 2012, as the Obama plan projects. Remember: We pay hundreds of billions of dollars in taxes annually just to cover interest on the debt. That’s spending taken out of the job-creating private sector.

Obama proposes cutting deficits — over 10 years, long after he will be out of office — by only $1.1 trillion. And he mostly ignores massive spending on Social Security and Medicare. What’s just as troubling is that his budget unrealistically assumes there will be far faster economic growth than either the Congressional Budget Office or private forecasters predict.

The president proposes spending more for education (which constitutionally is not a federal job), biomedical research, energy efficiency, high-speed rail and other “good” things. But it all would be irresponsibly financed by more red ink.

Obama, to his credit, would reduce or halt spending for more than 200 programs, saving $33 billion in 2012. He would reduce some spending on higher education grants and the military, and some projects for public health and water treatment. But an added $7 trillion in debt over the next 10 years proves that is not nearly enough economizing in this time of economic stagnation and unemployment.

A writer for the Internet magazine put it starkly: “[L]et’s cut [the budget plan] down to a useful, human, household size. Next year, the government plans to take in $2.63 trillion — and to spend $3.73 trillion. For our purposes, let’s use $60,000 as the government’s income and $85,000 as its expenses.”

That, of course, is a recipe for bankruptcy.

Not everything Obama wants will become law. Congress has the actual spending authority.

Will Congress assert the responsibility that Obama has abdicated? The American people should insist on it.

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carlB said...

Opinion » Free Press Wednesday, Feb. 16, 2011 An irresponsible budget plan

Reply to FP Opinion: It appears that people do not understand or realize there is a cycle occurring here that the down turn cannot be turned around instantly with drastic cuts in spending by the government without having adverse negative effects which will make our conditiion worse instead of better. There also appears to be more misinformation being put out by the opponents of Obama. Since everyone wants to bring up how much the total National Debt is and how much President Obamas budget deficit is, let us not forget all of Bush's unfunded issues that Obama has also added to his 2010 budget. I don't see any cut in the Congress persons' pay yet? Below are some sites which many of you will not like.

US National Debt Graph: What They Never Tell You

February 16, 2011 at 10:57 a.m.
carlB said...

The US consumers, industrial and our masses of regular consumers, apparently do not think what the effects of creating an unsustainable $40 - $50 billion dollars per month trade deficit soes to the US economy when they buy imported goods supplied by the "global corporate monopolies"? Over a period of ten years how much money has this already accummulated for the Companies having their manufacturing done in the lower monetary vaqlue countries? Does $4800 billion dollars sound about right? Do we know who is getting the "net profit" from the money we spend?

February 16, 2011 at 6:56 p.m.
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