Obama Inherited a $1.3 trillion dollar deficit? Not even close
Obama continues to spin the fact that his $780 billion stimulus more than doubled the deficit which was an estimated $550 billion when Bush left office. He is lying when he says he inherited a $1.3 trillion deficit. I am fed up with him and the main stream media that continues to propagate lies and refuses to do real investigative reporting on the deficit. Obama’s budget is sending the deficit to banana republic levels threatenng the US economy itself. People need to wake and do some research beyond the MSM.
The 2009 budget was bad, but now Obama wants to spend more! From the Hertitage Foundation:
“Over the 10 years in which both budgets overlap (FY 2010-2019), this year’s budget would spend an additional $1.7 trillion and run up an additional $2 trillion in budget deficits (see Table 1).[1] In fact, this year’s proposal shows annual budget deficits as much as 49 percent larger than last year’s proposal–raising the debt by an additional 6 percent of GDP over the same period. It is a spending spree that will drive up both taxes and deficits.
In addition, the President’s budget would:
* Permanently expand the federal government by nearly 3 percent of gross domestic product (GDP) over 2007 pre-recession levels;
* Raise taxes onall Americans by more than $2 trillion over the next decade (counting health care reform and cap and trade);
* Raise taxes for 3.2 million small businesses and upper-income taxpayers by an average of $300,000 over the next decade;
* Borrow 42 cents for each dollar spent in 2010;
* Run a $1.6 trillion deficit in 2010–$143 billion higher than the recession-driven 2009 deficit;
* Leave permanent deficits that top $1 trillion in as late as 2020; and
* Double the publicly held national debt to over $18 trillion.[2]”
“The budget more than doubles the national debt held by the public, adding more to the debt than all previous presidents — from George Washington to George W. Bush — combined.” – WSJ
“…Obama’s plans are more grandiose than Bush’s. Obama wants to encourage green technology and energy independence, and move toward national health care. The cost is enormous. He announced last month his obscene $3.6 trillion budget for fiscal year 2010. Obama has endorsed the highest level of federal spending since 1945 – rising from today’s 21% of GDP to a whopping 27.7% in one year. To pay for this monster budget, Obama proposes the largest tax increase in history, including a huge tax on oil & gas (cap and trade), which will result in sharp increases in the cost of electricity, natural gas, and gasoline. He also will repeal the Bush tax rates for individuals who have incomes higher than $200,000 and for couples earning more than $250,000. Contrary to Obama’s claim, more than 65% of taxpayers in this category are small business owners and investors.” – Mark Skousen, Economist
The scary part is the below quote is from Obama’s responsibility budget. What a joke! Bush left a $550 billion deficit that the Dems have nearly quadrupled in a month! Don’t blame Bush for this. The entitlements program talked about is Obama’s plan that just went through in the stimulus. He won’t even take responsibility for his own stimulus bill! This is nothing but lies except for the fact he and the Dems just turned a deficit into a DEFICIT that will hurt my children’s future. This is nothing but propaganda! Who would enact cap and trade, quadruple the deficit, not cut taxes across the board, force universal health care, and double foreign aid during a recession unless you wanted it to turn into a depression. The truth is that Congress just passed a $787 billion “stimulus” plus a $400 billion follow on. Let’s see 550+781+400=$1.73 trillion. Who is fooling who? This isn’t some accounting irregularities from the Bush Administration. This is Democrats unleashed. Obama’s math doesn’t add up anyway. I think Obama needs some better financial advisors in order to correctly tally up the deficit and the spending under his administration.
Fiscal Irresponsibility
Another manifestation of irresponsibility is the large budget deficits we are inheriting. These deficits, over time, will harm economic growth and impose burdens on our children and grandchildren. For the past eight years, in a time of economic growth, the Government spent recklessly on tax cuts for the few and hand-outs for the welloff and well-connected, mismanaged billions of dollars in taxpayer money, and failed to honor the responsibilities we have to future generations. Massive new programs have routinely been omitted from the Budget to mask their true cost, while a new entitlement program and massive tax cuts were proposed and signed into law without any attempt to pay for them. Between 2000 and 2008, real Government outlays increased at a 3.6 percent annual average rate, three times the 1.2 percent annual average rate between 1992 and 2000. This has helped turn a surplus of $236 billion at the end of the Clinton Administration, that was projected to grow still larger over time, into a deficit of more than $1 trillion in 2009. (see Figure 12, Surpluses Have Turned to Deficits). Furthermore, the amount of debt held by the public has nearly doubled to $6.4 trillion from 2001 to 2008. We are now living with the fallout of this deep fiscal irresponsibility(p.14 Obama’s fiscal Responsibility).
Mr. Obama’s $3.6 trillion budget blueprint, by his own admission, redefines the role of government in our economy and society. The budget more than doubles the national debt held by the public, adding more to the debt than all previous presidents — from George Washington to George W. Bush — combined. It reduces defense spending to a level not sustained since the dangerous days before World War II, while increasing nondefense spending (relative to GDP) to the highest level in U.S. history. And it would raise taxes to historically high levels (again, relative to GDP). And all of this before addressing the impending explosion in Social Security and Medicare costs.
