Skip to comments.Debt Has Climbed $4.47T Since ObamaReleased First Budget—Calling for‘A New Era
Posted on 02/13/2012 10:13:10 AM PST by Nachum
The federal debt has increased by $4.47 trillion since President Barack Obama released his first federal budget on Feb. 26, 2009. That budget was entitled, A New Era of Responsibility. On Feb. 26, 2009, as Obama released his budget for fiscal 2010, the national debt stood at $10.88 trillion (10,881,159,722,022.36). At the close of business on Feb. 9, 2012, the national debt stood at $15.36 trillion ($15,355,838,921,022.16). That represents an increase in the debt of $4.47 trillion ($4,474,679,198,999.80).
(Excerpt) Read more at cnsnews.com ...
Thats really the only word we can use to describe the release of a sensitive and confidential 57 page memo, written by then soon-to-be U.S. Treasury Secretary Larry Summers in December 2008, about what became President Obamas signature economic program in the first year of his presidency: the stimulus package.
James Pethokoukis has summarized some of the most significant aspects of the memo, which weve excerpted below, and which reveals the Obama administrations thinking behind what became an over 821 billion dollar boondoggle. The bold text represents Pethokoukis summary of that thinking, which is directly followed by a supporting quotation from Larry Summers memo:
1. The stimulus was about implementing the Obama agenda. The short-run economic imperative was to identify as many campaign promises or high priority items that would spend out quickly and be inherently temporary.... The stimulus package is a key tool for advancing clean energy goals and fulfilling a number of campaign commitments.
2. Team Obama knows these deficits are dangerous (although it has offered no long-term plan to deal with them). Closing the gap between what the campaign proposed and the estimates of the campaign offsets would require scaling back proposals by about $100 billion annually or adding new offsets totaling the same. Even this, however, would leave an average deficit over the next decade that would be worse than any post-World War II decade. This would be entirely unsustainable and could cause serious economic problems in the both the short run and the long run.
3. Obamanomics was pricier than advertised. Your campaign proposals add about $100 billion per year to the deficit largely because rescoring indicates that some of your revenue raisers do not raise as much as the campaign assumed and some of your proposals cost more than the campaign assumed.... Treasury estimates that repealing the tax cuts above $250,000 would raise about $40 billion less than the campaign assumed.... The health plan is about $10 billion more costly than the campaign estimated and the health savings are about $25 billion lower than the campaign estimated.
4. Even Washington can only spend so much money so fast. Constructing a package of this size, or even in the $500 billion range, is a major challenge. While the most effective stimulus is government investment, it is difficult to identify feasible spending projects on the scale that is needed to stabilize the macroeconomy. Moreover, there is a tension between the need to spend the money quickly and the desire to spend the money wisely. To get the package to the requisite size, and also to address other problems, we recommend combining it with substantial state fiscal relief and tax cuts for individuals and businesses.
5. Liberals can complain about the stimulus having too many tax cuts, but even Team Obama thought more spending was unrealistic.
As noted above, it is not possible to spend out much more than $225 billion in the next two years with high-priority investments and protections for the most vulnerable. This total, however, falls well short of what economists believe is needed for the economy, both in total and especially in 2009. As a result, to achieve our macroeconomic objectivesminimally the 2.5 million job goalwill require other sources of stimulus including state fiscal relief, tax cuts for individuals, or tax cuts for businesses.
6. Team Obama thought a stimulus plan of more than $1 trillion would spook financial markets and send interest rates climbing. To accomplish a more significant reduction in the output gap would require stimulus of well over $1 trillion based on purely mechanical assumptionswhich would likely not accomplish the goal because of the impact it would have on markets.
the debt was at $9.5 trillion when 0bama took office.
Let me be the 2nd: IT’S OBAMA’S FAULT!
The list, Ping
Let me know if you would like to be on or off the ping list
If only those republican would pass all the new spending he wants, the debt would go down. /s
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