From American Thinker:
Every single proposal from this President makes the budget outlook worse. Much worse. Unprecedented in peacetime worse. Third World basket case, debtor-nation, worse. Can we get anything from this man that is not a 1,000 page piece of legislation that costs $1 trillion and needs a new czar?
Let’s grant, for the sake of argument, that Obama was handed a terrible situation. He was made captain of a ship that was leaking and close to sinking. But instead of patching the leaks, he is taking an ax to everything. He says we can’t live with the status quo.
Can we please not save this country by destroying it?
Randall Hoven at American Thinker has boiled down the CBO budget estimates for Obama deficits for about the next 10 years. What Hoven tells us is that the deficit spending Obama and the Democrats are piling upon us is unprecedented….much worse than anything Reagan or Bush could have comprehended.
Do you get the size and endurance differences? Obama’s average will be worse than Reagan’s worst single year. Obama’s best will be worse than Bush’s worst single year. Obama’s average will, in fact, be worse than any year since 1930 except for World War II. That means unprecedented in peacetime.
Explain, you say? Let’s look at Obama:
Note a few things. First, Obama’s budget would more than double the long-term deficit, from $4.4 T to about $9.2 T, when estimated apples-to-apples. Secondly, the baseline estimate has gone up $2.7 T, or 61% just between June and August. Third, we do not have such an updated estimate for Obama’s budget.
If CBO would re-do its estimate for Obama’s budget like it did for the baseline case, we could expect the 2010-2019 cumulative deficit to be $12 T to $15 T if Obama gets his way — before Obamacare or Cap & Trade or anything else new.
Let’s be clear here. If Congress from here out does nothing but maintain the dreaded status quo, we are on an unsustainable budget path. A path of structural deficits never going below $500 B or 3% of GDP in any year from now on. A path that leaves us with a public debt of about 67% of GDP from 2011 on, or a level not seen since Truman was paying off World War II.
That’s the good news. The bad news is if Obama gets his way. If he does, essentially double everything: annual deficits more like $1 trillion or 6% of GDP every year. Debt held by the public will reach at least 80% of GDP, if not 90% or more.
Now to Reagan and Bush, both of whom are regularly impugned by the left… Both are accused of ballooning the deficit., when in reality the facts are that 8 months into his Presidency Obama is leaving them in the dust. How do they really compare?
In Reagan’s eight years, 1981-88, the deficit averaged 4.2% of GDP, with the worst year being 6.0%. Under George W. Bush, 2001-2008, the deficit averaged 2.0% of GDP, with the worst year being 3.6%.
Now let’s look at CBO’s forecast of Obama’s deficits for 2009-2016. The average deficit will be 6.3% of GDP, with a worst case of 13% and a best case of 3.9%. And these are the rosy predictions, the June predictions — before being updated in August as the baseline scenario was.
And it only gets worse under Obama:
What’s more, the numbers under Obama never get better. The picture doesn’t clear up with the end of this recession. The deficit will be 5.6% of GDP, and the public debt 82% of GDP (unprecedented in peacetime), in 2019. But again, those are the rosy numbers.
Obama’s budget is now being considered by Nancy Pelosi’s House and Harry Reid’s Senate. Do you think the tweaks they make to Obama’s budget will increase or decrease the deficit? Obama’s budget did not include health care reform. The health care bill currently being considered (H.R. 3200) was estimated to add $1 trillion to the 2010-2019 cumulative deficit, per the CBO.
Things were bad in 2008. What Obama did early ($787 B stimulus, $410 B reconciliation, $350 B TARP part II) made them worse. What he put in his February budget would make them even worse. What he proposed after that budget (health care reform with a public option, cap and trade emissions legislation) would make them yet worse again.
We are in an unsustainable territory and at this level our kids and grandkids have had the American Dream stolen from them before they’ve had the chance to take their stab at it.
These deficits, among other Obama-inducing catastrophes, are destroying our country…..doesn’t Obama know that? Or does he just not care? Or, perhaps it was part of the “hopenchange” plan along? Because, after all, “never let a crisis go to waste”!
Filed under: Barack HUSSEIN Obama, Economic Stimulus, Economy, History, Liberalism, Progressives Ain't, Ronald Reagan, Socialized Healthcare, Taxes | Tagged: Bush deficits, Cap and Trade, Congress, czar, debtor-nation, deficits, GDO, never let a crisis go to waste, Obama deficits, Obamacare, Pelosi, Reagan deficits, Stimulus Bill, TARP |