Economy Alarm: Democrats' Version of "Fiscal Responsibility" Soars Deficit to New Heights

Democrats Pledged to Restore “Fiscal Responsibility” In a Speech Last Week:
“… But one of the pillars of this foundation is fiscal responsibility.  We can no longer afford to spend as if deficits don’t matter and waste is not our problem.  We can no longer afford to leave the hard choices for the next budget, the next administration — or the next generation.  That’s why I’ve charged the Office of Management and Budget…with going through the budget — program by program, item by item, line by line — looking for areas where we can save taxpayer dollars.” (Remarks by the President on Reducing Spending in the Budget, May 7, 2009)

Credibility Crash: Obama’s Budget Soars the Deficit to Four Times larger than in 2008:
“With the economy performing worse than hoped, revised White House figures point to deepening budget deficits, with the government borrowing almost 50 cents for every dollar it spends this year.

“The deficit for the current budget year will rise by $89 billion to above $1.8 trillion — about four times the record set just last year. The unprecedented red ink flows from the deep recession, the Wall St. bailout, the cost of President Barack Obama’s economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in.

“As the economy performs worse than expected, the deficit for the 2010 budget year beginning in October will worsen by $87 billion to $1.3 trillion, the White House says. The deterioration reflects lower tax revenues and higher costs for bank failures, unemployment benefits and food stamps.

“For the current year, the government would borrow 46 cents for every dollar it takes to run the government under the administration’s plan. In one of the few positive signs, the actual 2009 deficit is likely to be $250 billion less than predicted because Congress is unlikely to provide another $250 billion in financial bailout money.

“The developments come as the White House completes the official release of its $3.6 trillion budget for 2010, adding detail to some of its tax proposals and ideas for producing health care savings. The White House budget is a recommendation to Congress that represents Obama’s fiscal and policy vision for the next decade.

“Annual deficits would never dip below $500 billion and would total $7.1 trillion over 2010-2019. Even those dismal figures rely on economic projections that are significantly more optimistic — just a 1.2 percent decline in gross domestic product this year and a 3.2 percent growth rate for 2010 — than those forecast by private sector economists and the Congressional Budget Office.” (Associated Press, “White House: Budget deficit to top $1.8 trillion,” May 11, 2009)