Posted on 03/20/2023 12:45:16 PM PDT by ChicagoConservative27
President Biden’s FY 2024 budget promises to reduce future deficits by $2.8 trillion over the next 10 years. That’s a big number. It is not enough, however, to prevent the debt from climbing to a record 110 percent of GDP in 2033, up from 98 percent this year and more than twice its average over the past 50 years.
It is also not enough to prevent interest on the debt from doubling over the next 10 years and reaching a record high as a share of the economy by 2032. The record is 3.2 percent of GDP in 1991. It reaches 3.3 percent of GDP in 2032 in the proposed budget.
How can a deficit reduction plan of nearly $3 trillion still leave the debt and interest costs at record levels? The answer is simple. Deficit reduction is calculated from a baseline of projected deficits that assume no changes are made to current law. Baseline deficits in the president’s budget total $19.9 trillion over the next 10 years, meaning that even with $2.8 trillion of deficit reduction the federal government would still accumulate $17.1 trillion of new deficits, adding to the total debt.
(Excerpt) Read more at thehill.com ...
Only in government and aided by their media cronies, can ANYONE claim with a straight face that they are “reducing the deficit” by going into debt by $17 trillion vs. $20 trillion.
So the valid comparison is federal debt to federal income; that's like $31 Trillion compared to about $5.5 Trillion. That comes to about 5.5 as much debt as income. And the ratio gets worse each year.
LOL-—$3 trillion in reduction means $20 Trillion in new spending...
Whose butt did they pull that figure out of?
Deficit reduction by raising taxes is a disaster and NO CURE.
Deficit reduction MUST come by CUTTING SPENDING AND THE SIZE OF GOVERNMENT!!!!
The smoke and mirrors are being obscured by more smoke and more mirrors.
In my seventies now, I have heard our political class speak of "deficit reduction" and "debt reduction" and "campaign finance reform" each and every budget cycle. And...
.....nothing changes for the good.
I accept none of them and none of their bilge.
Thanks Federal Reserve, you did a real bang-up job there...
“Whose butt did they pull that figure out of?”
The Federal Office of Budget Fantasies.
bkmk
CBO called deficit over the next ten years at +$16T. Joe’s $#T reduction means very little. They mean to destroy the reserve currency status of the dollar. Then what?
Many, many moons ago, Rush was all over this. Federal Baseline Budgeting, where an automatic 10% increase in every NEW BUDGET was cooked into the books. ANYTHING under that 10% increase was a MASSIVE cut that would starve women, children, and seniors.
During Covid they spent more than ever before, so any reduction in that level of spending is considered a cut.
I remember in 2007-2008, the DemocRATS were SCREAMING we had to pass some spending ‘within 48 hours’ or the world would end. Once it passed the House of Representatives, they all took vacations, and the Senate took their time. Spending other people’s money is on the resume of most democRATS, and too many Rinos.
That’s a reduction of about 280 billion a year. He’s ringing up over a trillion in deficits a year so that’s not much reduction in the scheme of things. And I bet he plans on doing that exclusively with tax increases.
Every time you hear Biden say “deficit reduction”, what he means is a make-work project for the 87,000 new IRS agents.
How can a deficit reduction plan of nearly $3 trillion still leave the debt and interest costs at record levels?
Now you know why Biden was at the lower end of his classes.
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