Free Markets, Free People


President’s FY2015 budget more proof that he lives in a fantasy world

If I’m not mistaken, not a single Obama budget (those few he’s submitted) over the years has gotten even one vote when it hit Congress.  And that includes votes from Democrats.

This year is likely to be no exception.

Veronique De Rugy at George Mason Univerity’s Mercatus Center says:

Much of the president’s proposed budget’s rosy projections will require considerable tax financing and political restraint to come to fruition. If revenues are lower than anticipated or spending is not restricted as planned, the ten-year debt picture will look quite different. I have noted before that President Obama’s later mid-session review budget differed considerably from his early budget projections. Early revenue and outlay projections were higher than actual amounts, while deficit spending surged much higher than anticipated from 2010 to 2012. This budget will likely mis-project critical variables as well. The rosiest projections all too often turn out to be the most disappointing.

Talk about an understatement.  And the rosy projection?  Well here it is compared to the CBO projection:

You have to chuckle at a miss that bad. In the outlying years, look at the percent of GDP the CBO projects vs. Obama.  Any guess as to which projection is most likely of the two?

Go back to a key line ins De Rugy’s analysis:

If revenues are lower than anticipated or spending is not restricted as planned, the ten-year debt picture will look quite different.

Point to a moment in recent history where our profligate politicians have actually followed a restrictive spending plan that would have the effect Obama says it will?

Yeah, I can’t point to it either.

Regardless, however, we’re supposed to believe that if the plan is followed as layed out in the Obama budget, we’ll see long term debt reduction.

Unfortunatly the next chart doesn’t at all support that claim:

In every year projected, spendin is greater than revenue.  So what they’re assuming is massive growth in the eoncomy to make the debt they pile up in the later years a smaller percentage of the GDP.

Really?  Taxes are going to go up, government spending will also go up and yet somehow the private economy is going to surge (10 more “recovery summers”, eh?)?  Obama plans spending and taxation as a percentage of GDP that are at or near historic highs, but we’ll see huge economic growth to support that?

Wow, if you’re not flying the red BS flag, you need to take an Econ 101 class.

Yet this is what the President of the United States is presenting as a functional budget for this country 10 years into the future.

Fantasyland.

~McQ

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10 Responses to President’s FY2015 budget more proof that he lives in a fantasy world

  • Hey, if you can have moonpony engineering that boosts over-the-road truck mileage by 50 or 100%…
    why the hell not pixie-dust economics?
    It’s gotta work at least as well as SmartDiplomacy ™, riiiiiight…???

  • His debt projection is tied inversely to his expectation of temperature increase due to Climate Change.   This is achieved through magic savings and jobs created by regulating and then eliminating coal from national use and the increased taxation attributable to his investments in GM and green technology which will result in an influx of revenue lowering the debt dramatically, again in direct inverse proportion to global temperature increases.

    Naturally if something is awry and the global temperature unexpectedly does not rise (no doubt due to unforeseen volcanic activity and unbalanced polar vortexes freezing the Great Lakes) then his plans may have to be modified after he is swept in by national acclaim with 99% of the vote once he uses his pen to modify the Constitution, allowing him to run for a 3rd term.

  • Has the CBO ever predicted outlays to be more than actually occur ?

    • Yeah, back in 1886 when Grover Cleveland put the kibosh on a few programs. They predicted outlays of $30 MILLION and it came in at $28 MILLION.

  • Never underestimate the power of belief.
    You know how when millions of children believe in Santa Clause, it makes it so…
    It’s kinda like that.

  • Don’t you just love post-modern budgeting?

    I’ve often called Microsoft Excel a tool for making fiction look presentable, based on the way I’ve seen it used for forecasting and budgeting. The post-modern left operates in the same spirit and cranks it up to eleven. They simply don’t care if the numbers have anything to do with reality as long as they advance the left’s agenda.

    The gullible post-modernists are so stupid they think that those pulled-from-the-backside numbers create reality.

    • From which you can, post Presidency, claim that Obama balanced the budget, reduced the deficit and raised the American standard of living, and then claim the CURRENT Republican President and Congress have completely destroyed, misspent, squandered and bungled his budgetary legacy.

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