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Obama underestimated his budget deficit
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USA Today reports the Congressional Budget Office predicts President Obama's spend too much, tax too much, borrow too much budget will result in deficits of $9.3 trillion over 2010-2019 -- $2.3 trillion more than estimated by the White House.
If we again return to the seconds analogy, we can sort of grasp the magnitude of how much money that we do not have that Obama intends to spend. We all know how long a second is. A million seconds is 13 days. A billion seconds is 31 years. A trillion seconds is 31,688 years. The $9.3 trillion Obama budget deficit is 294,698 years.
The Congressional Budget Office analysis of Obama's budget plan states that:
- The deficit will total almost $1.7 trillion (12 percent of GDP) this year and $1.1 trillion (8 percent of GDP) next year—the largest deficits as a share of GDP since 1945. Deficits would shrink to about 2 percent of GDP by 2012 and remain in that vicinity through 2019.
- Spending is projected to decline from 27.4 percent of GDP in 2009 to about 22 percent in 2012 and subsequent years.
- Revenues [read taxes] are estimated to rise from 15.5 percent of GDP in 2009 to about 20 percent in 2012 and subsequent years.
- The President’s proposals would add $4.8 trillion to the baseline deficits over the 2010–2019 period.
- The cumulative deficit from 2010 to 2019 under the President’s proposals would total $9.3 trillion, compared with a cumulative deficit of $4.4 trillion projected under the current-law assumptions embodied in CBO’s baseline.
- Debt held by the public would rise, from 41 percent of GDP in 2008 to 57 percent in 2009 and then to 82 percent of GDP by 2019 (compared with 56 percent of GDP in that year under baseline assumptions).
- Proposed changes in tax policy would reduce revenues by an estimated $2.1 trillion over the next 10 years.
- Proposed changes in spending programs would add $1.7 trillion (excluding debt service) to outlays over the next 10 years. Interest costs associated with greater borrowing would add another $1.0 trillion to deficits over the 2010–2019 period.
A $1.7 trillion (12 percent of GDP) budget deficit and a National debt equal to "82 percent of GDP" -- unbelievable and unacceptable.
Special Report: Obama's First 100 DaysExclusive examiner.com coverage of the Obama administration's promise to bring about change.
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