Posted on 11/22/2009 8:08:31 PM PST by Steelfish
NOVEMBER 20, 2009
The Coming Deficit Disaster
The president says he understands the urgency of our fiscal crisis, but his policies are the equivalent of steering the economy toward an iceberg.
DOUGLAS HOLTZ-EAKIN
President Barack Obama took office promising to lead from the center and solve big problems. He has exerted enormous political energy attempting to reform the nation's health-care system. But the biggest economic problem facing the nation is not health care. It's the deficit.
Recently, the White House signaled that it will get serious about reducing the deficit next year—after it locks into place massive new health-care entitlements. This is a recipe for disaster, as it will create a new appetite for increased spending and yet another powerful interest group to oppose deficit-reduction measures.
Our fiscal situation has deteriorated rapidly in just the past few years. The federal government ran a 2009 deficit of $1.4 trillion—the highest since World War II—as spending reached nearly 25% of GDP and total revenues fell below 15% of GDP. Shortfalls like these have not been seen in more than 50 years.
Going forward, there is no relief in sight, as spending far outpaces revenues and the federal budget is projected to be in enormous deficit every year. Our national debt is projected to stand at $17.1 trillion 10 years from now, or over $50,000 per American. By 2019, according to the Congressional Budget Office's (CBO) analysis of the president's budget, the budget deficit will still be roughly $1 trillion, even though the economic situation will have improved and revenues will be above historical norms.
The planned deficits will have destructive consequences for both fairness and economic growth. They will force upon our children and grandchildren the bill for our overconsumption.
(Excerpt) Read more at online.wsj.com ...
Although, oddly, futures are up right now which I wouldn’t have expected given the Senate’s vote on healthcare.
We are right on plan....not a plan FOR America, but a plan AGAINST America. Yes, right on plan.
Futures are up because they know Reid cannot find 60 votes to shutoff debate.
The consensus all along has been that Reid could get ON the bill but he cannot get OFF the bill.
Notwithstanding the hyperbole and threats that the sky is falling from many ignorant freepers, who couldn’t pass a 8th grade civics test while lecturing us on legislative procedure.
Except this time, he's taking the rest of us with him.
Great (and sadly, probably true) comparison.
Bump!
The people in charge have an entirely different view of America. they don’t care if they blow the deficit to the moon. They want to force higher taxation the more mney the government sucks up the better.
They are evil SOB’s this is all for SEIU and to hobble the military and take everything for their contituents, includng illegal immigrants.
Spot on analysis! And like many fools, he ignores the advice of many others telling him he’s foolish - until he’s flat broke and whines that no one warned him ahead of time.
He’s way out of his depth, but he’s too self-obsessed to realize it. As we say in Australia, he’s very “up himself”!
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