Obama's proposed $3.5 trillion budget is claimed will cut the deficit in half by the end of his term. However, the budget proposed by the administration for 2010 is projected by some to come up $1.7 trillion short. The national debt is predicted to rise to just over $14 trillion by the end of the year. Adding another trillion plus dollars in red ink is a peculiar way to go about cutting the deficit. The projected deficit is an amount just slightly over the nearly $1.7 trillion spent last year to "stabilize" and "stimulate" the economy.
The numbers estimated to be saved by Obama's "scouring" so far barely register in budget calculations. Perhaps Obama is counting on an economic recovery of historic proportions as well as the savings from not having to bail out the financial industry or the stabilize the economy again. I would hope this is the case. Obama's stated goal to scour $2 trillion in six years from a $3 trillion annual budget is something easier promised than delivered, particularly from an administration as ambitious and idealistic as his. Despite the administration's forecast of deficit reductions, the federal government is on course to add at least $8.5 trillion to the national debt over the next ten years according to CNNMoney.com. Whatever the case, even in the unlikely event Obama delivers on his promise, you can bet that $2 trillion in budget savings will be spent, not put in the bank, and so not really saved at all.
Naturally, Obama blames the Republicans for the budget woes. The economy is a mess because of the poor management, excessive spending, and lack of oversight by the Bush administration as well as its wars in the Middle East: two wars that Obama, despite his rhetoric, is pursuing with vigor. The mess must have been considerable since two years into his administration, Obama has yet to make any significant headway into cleaning it up. Indeed, the mess has gotten worse. Despite his criticism of the Bush administration's reckless spending, Obama plans to go even deeper into debt and unleash a blizzard of still more spending and regulation. He will try to keep a veneer of fiscal responsibility by proposing tax increases on the wealthy (the usual suspects), and imposing "financial responsibility fees" on the banks. Meanwhile, he wrestles with the economy, proposing multifarious incentives and "fees" and promising new regulations and restraints. He seems willing to try anything. Anything that is but significantly cutting the budget or limiting his plans and ambitions to increase the size and role of government to accommodate reality.
It is estimated that the national debt will increase 31.6% by the end of the Obama administration, dwarfing the %12.2 rise under the Bush administration. Some figures indicate that at the rate Obama is spending, by the end of his first term the national debt will be 100.8 percent of the U.S.'s GDP. Even if that figure turns out to be exaggerated, the percentage of increase should mortify us. Still, even amidst all the financial woes and alarming predictions and statistics, Obama has still not given up on his plan for national health care or expanded government. He wants his place in history, no matter how much it costs or who has to pay for it.
Determined to keep himself and his party afloat in the eyes of the public, Obama continues to flail away at the economy, spending vast amounts of money and making bold promises. Recently, Obama gave a speech at a high school in Nashua, N.H. In it, he lectured his audience on the need for fiscal responsibility in difficult economic times. "You don't go buying a boat when you can barely pay your mortgage" he told them. Sound advice. Now if only Obama would only heed it.
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