Sunday, September 05, 2010

Congressional Budget Office Reports America's Annual Deficit Will Be $1.3 Trillion For 2010; Obama Growing National Debt Twice As Fast As Bush

McClatchyDC reports that the Congressional Budget Office (CBO) says that the annual budget deficit for 2010 will be $1.3 trillion. That's $27 billion less than the CBO predicted in March 2010, and $71 billion lower than the 2009 deficit. Measured as a share of the total economy, it's 9.1 percent of Gross Domestic Product (GDP), the second largest in the last 65 years. The worst was in 2009, when it measured 9.9 percent of the total economy. This is also posted on McClatchy's Planet Washington blog.

Read the 112-page CBO report HERE. You can read a shorter executive summary HERE.

The CBO projects that during the next few years, federal budget deficits would decline as a share of GDP if the current-law assumptions about fiscal policy in CBO's baseline came to pass. This includes the assumption that the Bush tax cuts will be allowed to sunset. Under those assumptions, the deficit would drop to 7.0 percent of GDP in 2011 and 4.2 percent in 2012 and then would reach a low of 2.5 percent of GDP in 2014. For the rest of the 10-year projection period, deficits would range between 2.6 percent and 3.0 percent of GDP, close to the average of 2.6 percent of GDP experienced over the past 40 years.

In response to the initial report, some smart-aleck posted the following comment to the McClatchy story:

ohce wrote on 08/28/2010 08:53:07 PM:

National debt when Bush took office: $5.7 trillion
National debt when Bush left office: $10.6 trillion
Source: treasurydirect-dot-gov

O.K., fair enough. That means that the overall national debt under Bush grew by $4.9 trillion over an eight-year period. That's an average of $612.5 billion per year. In contrast, the national debt under Obama is now currently at $13.5 trillion according to the ticker on my sidebar. That's $2.9 trillion in ONLY two years, an average of $1.45 trillion per year.

The national debt has grown over twice as fast under Obama than under Bush. Try again, lefties.

1 comment:

  1. Obama and Congress are trying to cut this...much of this is related directly to the tax cuts the Republicans placed ten years ago that were set to expire this year specifically because they would continue to add over a trillion dollars to the deficit. Now the republicans want to renew these deficit busting cuts to benefit the richest 2% at the expense of the middle class.

    It is strange how they can think these would help our economy when they are already ten years old and have only made the deficit what it is now.

    You cannot blame Obama for the hole the republicans and former congress dug over the past eight years. Keep in mind that Obama's first year was with a budget written in 2008 and signed by Bush. Each new president is saddled with the prior president's budget for the first year.

    The economy is growing, though not as fast as one might like, due in part to partisan bickering.

    Case in point is Omama's plan to introduce tax breaks for business first used and proposed by republicans. Now that Obama is in favor of those breaks the republicans are suddenly against their own ideas.

    It is their goal to scuttle our economy for the benefit of major corporations, many of whom send our factories and jobs over seas funded, in part, by the last ten years of tax breaks for the rich.

    What do these corporate CEO's gain from this? Suppressed wages, lowering their costs and increasing their profits at the expense of the American workers. Rather than send more jobs to China or Mexico they see pushing the average American's standard of living and income down as a way to institute third world wages here in America.

    You can see a current example of this today where Mott's / Dr.Pepper despite their workers helping turn a $300million loss around into a $550 million profit are taking advantage of the economy to try to force them to take less pay and reduced benefits, not because they need help to save the company, just because it will make them more profits. A bad economy is not bad for corporations.

    Question is, will the middle class commit suicide this election by handing the keys to the nation back to the same people who brought us "Recession '08" or will we smart enough to recognize when we are being played by the use of hate, lies and bigotry to serve the GOP agenda. Their plans are not good for the average American citizen, only for those with huge bank accounts.