Year 3 of Obamanomic brings us $1.5 trillion more of debt
Or so sayeth the CBO. Good thing they waited until today to announce it. Otherwise we might have heard snickering and outright laughter during the SOTU when our deficit-hawk President talked about how serious he was about reducing the deficit and the debt.
The budget deficit is now estimated to have widened this year to $1.5 trillion, the CBO said. That compares to a budget deficit of $1.3 trillion for the fiscal year that ended Sept. 30.
The increase in the deficit would bring it to 9.8 percent of gross domestic product, the CBO said, following deficits of 10 percent and 8.9 percent during the previous two years.
Do you remember how he promised to half the debt by the end of his first term in office? Yeah? Well that means he could run a deficit of $750 billion and keep his word. Funny how that works out, huh?
The CBO’s projections assume that current laws remain unchanged. If the nation continues on its current path, the CBO said, the total national debt will rise from 40 percent of GDP in 2008 to 70 percent by the end of 2011, reaching 77 percent of GDP by 2021.
But hey, this is all the other guy’s fault, remember? Oh, and one more point, those of you on the left having fun with Rep. Paul Ryan’s factual response? Make sure you go find someone who can explain the ramifications of this to you, ‘kay? And have them point out who it is that the CBO agrees with in principle as well:
“To prevent debt from becoming unsupportable, the Congress will have to substantially restrain the growth of spending, raise revenues significantly above their historical share of GDP, or pursue some combination of the those two approaches,” CBO Director Douglas Elmendorf wrote in a blog post announcing the report.
While you’re at it, have them explain the appetite for tax increases. Wait, I’ll save you the question – there is none. See December’s extension of the current income tax rates. Now, given that – try to focus. What does that leave? Yes, they’re left with “substantially restrain[ing] the growth of spending”. As in “no more new spending” and “cut back existing spending”. Precisely what Ryan has been saying, isn’t it?
So when Rep. Ryan makes the point that:
Under the terms of a House resolution passed Tuesday, Ryan is to set ceilings at 2008 levels or less.
He has a good reason, one backed by the facts of the situation and not some meandering mewling from Paul Krugman. This is the medicine for the addiction. America has said and is saying again that the voters are not willing to give you a single nickel more until government proves it can significantly cut it’s spending habit. No cuts, no increased taxes. In fact, if the cuts are indeed significant enough, the perhaps no new taxes are needed at all.
Yeah, I know, living within your means like all the rest of us have to do – what a concept.