Obama Budget by the Numbers: Borrows Too Much
Democrats Double Down on Borrowing, Failing to Create Environment for Job Creation
President Obama said in his most recent State of the Union Address that “[w]e need to take responsibility for our deficit”:
“We need to take responsibility for our deficit and reform our government. That’s how our people will prosper. That’s how we’ll win the future.’“ (“Obama’s Second State Of The Union,” The New York Times, 1/25/2011)
However, Obama’s budget released today reveals that he is apparently more interested in continuing to borrow than he is in reducing the deficit:
Obama’s budget plans for a record deficit, leading to yet more borrowing:
“Obama projects that the deficit will hit a record $1.6 trillion this year – which, at nearly 11 percent of the economy, would be the largest since World War II…
“His plan calls for annual deficits – and therefore annual borrowing – to stabilize at about 3 percent of the economy for much of the decade…
“All told, Obama estimates that the nation would have to borrow an additional $7.2 trillion through 2021 under his policies, an improvement from previous projections that exceeded $9 trillion.” (Lori Montgomery, “Obama’s Budget Raises Taxes On Affluent, Businesses, Boosts Spending On Innovation,” The Washington Post, 2/14/2011)
Obama’s spending is so out of control that the gross federal debt now equals the size of the U.S. economy:
“President Obama projects that the gross federal debt will top $15 trillion this year, officially equalling the size of the entire U.S. economy, and will jump to nearly $21 trillion in five years’ time.
“Amid the other staggering numbers in the budget Mr. Obama sent to Congress on Monday, the debt stands out — both because Congress will need to vote to raise the debt limit later this year, and because the numbers are so large.
“Mr. Obama’s budget said 2011 will see the biggest one-year jump in debt in history, or nearly $2 trillion in a single year. And the administration says it will reach $15.476 trillion by Sept. 30, the end of the fiscal year, to reach 102.6 percent of gross domestic product (GDP) — the first time since World War II that dubious figure has been reached.” (Stephen Dinan, “Debt now equals total U.S. economy,” The Washington Times, 2/14/2011)
DEMOCRATS DOUBLE DOWN
Democrats in Congress are doubling-down on borrowing too much by lavishing praise on Obama’s budget:
“Democrats praised Obama for taking steps to stabilize the economy and put the nation on a stronger fiscal path. At the same time, they signaled they aren’t on board with all his proposed program cuts.
“The plan ‘keeps in mind that we need to make smart choices that will create more jobs, lift up middle-class families and keep our economy growing,’ said Representative Chris Van Hollen of Maryland, the top Democrat on the House Budget Committee. He called the proposal a ‘tough-love budget’ that ‘doesn’t do violence’ to priorities like education and medical research.
“Senate Majority Leader Harry Reid, a Nevada Democrat, said Obama’s plan was a ‘serious attempt’ to address the deficit while Republicans are seeking to ‘slash the programs that keep us safe and make us competitive.’” (Laura Litvan, “Republicans in Congress Dismiss Obama Budget, Seek Deeper Cuts,” Bloomberg, 2/14/2011)