Budget Fantasies & FlamFlam (1)

On Tuesday President Obama held a news conference.  In response to the first question about the 2012 budget he delivered to Congress on Monday the President made an astounding assertion:

What my budget does is to put forward some tough choices, some significant spending cuts, so that by the middle of this decade our annual spending will match our annual revenues – we will not be adding to the national debt…we’re not going to be running up the credit card any more.

This chart shows figures taken directly from Table S-1, page 171 of the Obama 2012 Budget Document submitted to Congress Monday by the Obama Administration.

To repeat an overused Washington expression, Obama’a own Office of Management and Budget projects deficits as far as the eye can see.  By the middle of the decade the deficit would be “only” $607 billion, a third more than the largest Bush deficit.   But after that it would increase year after year – apparently forever!

If Congress were to adopt the Obama budget, AND if his absurdly optimistic tax revenue projections actually happened the government would still be borrowing record amounts – if there was anyone left in the world willing to lend money to these reckless spenders.

No Comments

Comments are closed.