Budget Deficit Grows

Today new budget deficit projections were released that shows a $1,800,000,000,000 deficit. This is up $90,000,000,000 from the last estimate, just three months ago. I like to put all the zeros behind the numbers to show how big they are.

Once again the Obama tried to say that it is all Bush's fault. I wonder how long he can use that line. Imagine in four years when he is running for re-election still blaming everything on Bush.

From 2010-2019 the smallest deficit is projected to be $500,000,000,000, with the cumulative deficit over that time to amount to $7,100,000,000,000. Those projections assume that the economy contracts by 1.2% this year and grows by 3.2% next year. The past two quarters have seen the economy shrink at over a 6% clip, so I am prepared for even bigger deficits.

To put this in perspective the current national debt at the time I'm writing this is $11,270,918,744,965. Obama's proposed budgets would increase the national debt by 62%.

By blaming Bush for the mess, the President can mislead the public into thinking that he doesn't really want to spend all this money, but that he has to in order to fix Bush's mistakes. We know of course this is a lie, Obama wants to increase the size and scope of government, he is a big government liberal. Check this out from the Heritage Foundation.

In addition there is a prominent economist out there who thinks the government should spend more to get us out of the economic downturn (maybe his wife will put another comment on my blog). That's right, let's dig the hole as deep as possible for future generations.

At some point we have to pay for all of this spending, the only question is how. This is where the President is lying to us, the way we are going to pay for his spending is by increased taxes for everybody. He says that nobody with an income under $200k will get a tax increase, but that just isn't true. The cigarette tax has already been increased, cap and trade will add on to that and whoever is unfortunate enough to follow Obama will have to clean up his mess by increasing the income tax. I wonder how long he will be able to blame Obama? This spending is setting up the next generation to fail, ask that same economist what increased tax rates do to aggregate expenditures also known as national income.