The Loud and Clear Message In President Obama's Budget (America needs a new President)

Forbes ^ | 02/25/2012 | Peter Ferrara

[SeekAndFind]

Last week, I discussed the central economic policy of President Obama’s budget and accompanying Presidential budget message. What drives economic recovery and growth according to the President and his budget is federal spending, deficits and debt, the fundamental tenets of the Keynesian economics that arose in the 1930s.

If you agree with that, then President Obama is your man for reelection in 2012. If you think that’s nuts, however, then the message of the budget to you is that America needs a new President.

But the budget and accompanying Presidential rhetoric includes several other messages as well.

One message is that the President and the Democrat Party will not cut federal spending. The President proposes in this budget to increase federal spending by $1.5 trillion on net over the next 10 years, with the federal government to spend $47 trillion over that time! By 2022, President Obama’s budget proposes to spend $5.82 trillion in that one year alone, virtually double the 2008 federal budget of $2.983 trillion, the year before Obama took office.

This is in the context of the national debt held by the public roaring to $20 trillion by 2022, as proposed in the President’s own budget. That compares to $5.8 trillion in 2008. The gross federal debt, which includes the money the taxpayers owe in the Social Security trust fund and similar federal debts, which will have to be paid, is projected in Obama’s own budget to total nearly $26 trillion by 2022, over 100% of GDP that year. But even in this exploding national debt crisis, the Democrats will not cut spending.

[expat2]

Keynes ideas were more sensible than is generally recognized these days, but have been corrupted by politicized Economics.

First of all, Keynes knew that govt. spending wouldn't work if the money multiplier was low (and MULT has been very low since 2009, and is still declining last time I looked). Keynes also wanted the government spending to stimulate the private, productive part of the economy, not used to keep non-productive bureaucrats and govt. workers in their jobs, as the Obama Stimulus was.

[Hardraade]

America needs a president. Not an imam.