This just in:
President Obama’s budget proposals, if carried out, would produce a staggering $9.3 trillion in total deficits over the next decade, much more than the White House has predicted, the Congressional Budget Office said on Friday.
The office’s estimates of deficits in the fiscal years 2010 through 2019 “exceed those anticipated by the administration by $2.3 trillion.”
The deficits under the Obama plan would be $4.9 trillion more than the projected deficits if there were no changes in current laws and policies — what the nonpartisan budget office calls its baseline assumption.
If you’re surprised, then you are simply naive. The rest of us expected Obama to do exactly this.
Even Obama’s budget director had to admit that the proposed spending levels were “ultimately not sustainable.” And that’s just based on the current projection. If you think this is the worst-case scenario, then you’re even more naive. The cost of Obama’s plan has already more than doubled since it was announced during his campaign. My guess would be that once implemented, it could easily cost two to five times more than the projection. Most government programs vastly exceed their projected expense.
This averages out to about a trillion a year, but again, I think that’s very low. This year’s deficit is going to top 2 trillion by itself.
Sort of puts this photo into perspective, doesn’t it?
The photo shows John Spratt giving George Bush the Gold, Silver, and Bronze Medals for Fiscal Irresponsibility for running deficits of $482B, $413B, and $398B. And that was while escalating the war in Iraq. Obama’s plan expects no Iraq war.
The question is: when does our national debt become unsustainable, and what happens then?
The debt now stands at around $11 trillion, with about $6.5 trillion owed to individuals, corporations and governments and other lenders, foreign or domestic, while about $4.3 trillion is owed to the funds for Social Security benefits, military and civil service pensions and other government programs.