Thursday, March 25, 2010

It's the SPENDING, Stupid!! Part 55,465

Terry Jeffrey:

....the Congressional Budget Office's analysis of President Barack Obama's new fiscal 2011 budget proposal, [...] predicts a massive escalation in government debt that could change our way of life forever.

"They literally crash the U.S. economy, if these kinds of deficits that he's proposing persist," Rep. Paul Ryan of Wisconsin, ranking Republican on the House Budget Committee, told me...

How bad IS it?

...During President George W. Bush's eight years in office, federal spending averaged 20.4 percent of gross domestic product, and annual budget deficits averaged 3.4 percent. Under Obama's new proposal, federal spending will average 24.1 percent of GDP over the next decade and annual deficits will average 5.2 percent.

Under Obama's plan, the federal government will never again see an annual deficit as small as the $458.5 billion of 2008. His smallest annual deficit would be $724 billion in 2014. After that, the annual deficit would head ever higher and never look back, passing the $1 trillion mark again by 2018, and reaching $1.25 trillion by 2020, the last year calculated by the CBO.

The interest will be ......um..........significant.

1 comment:

J. Strupp said...

In other news. Water is wet and the sky is blue.

Entitlement costs are set to bury us in a matter of decades.

I like how Ryan is throwing everyone else under the bus here like he hasn't been a memeber of Congress for years. Now he wants to cut tax receipts to 16%/GDP by giving the top tier another tax break under his "roadmap". I guess I'm still not certain how this'll help the situation. Sounds like the same old same old to me.