January 16, 2013
Obama's New Math Exaggerates Deficit SavingsTopics:
At his press conference this week, Obama made it seem as though the job of getting the government's deficits under control is nearly done, but a closer look at the numbers shows that Obama is exaggerating how much deficit reduction he's actually achieved, and is flat-out lying about the nation's still massive long-term budget gap and what will be needed to close it.
Investor's Business Daily - Wrong Budget Trajectory (emphasis added):
Obama's Bowles-Simpson debt commission, for example, said in its final report -- issued in late 2010 -- that a credible $4 trillion deficit reduction plan would produce red ink of just $279 billion in 2020. But the current budget trajectory puts that year's deficit at close to $600 billion, according to Congressional Budget Office data.More here.
Meanwhile, the commission plan called for national debt to be 65% of GDP by 2020, but the current CBO forecast has it at about 75%.
Worse, while the debt commission plan produced a balanced budget by 2035, the CBO predicts that under current law annual deficits will start climbing again after 2018.
All told, federal deficits will need to be cut at least another $2.5 trillion over the next decade to reach the debt commission targets.
Nor did the commission think that achieving real deficit reduction would be as simple as Obama makes it seem. The nation, the commission said in its final report, "is on an unsustainable fiscal path" and "even after the economy recovers, federal spending is projected to increase faster than revenues." ...
For those that are still counting, our nation's debt is up about 60% from the $10 trillion Obama inherited when he took office in January 2009 ... and spending is still going up. Worse, our serial-spendaholic-in-chief doesn't believe we have a spending problem.
Related: Forbes - President Obama: The Biggest Government Spender In World History
Posted by Hyscience at January 16, 2013 7:46 AM
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