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Opinion

Opinion

President needs reality check on spending, debt projections

October 9, 2009

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“Neither a borrower nor a lender be.” — William Shakespeare, “Hamlet”

Why won’t we listen to what used to be called sage advice before the Internet made too many of us think we are re-inventing the world and nothing we think or try has ever been thought or tried before?

The Obama administration is rumored to be seriously considering a second stimulus measure to “improve” the economy. Given the job losses since the last stimulus, I’m not sure we can stand more of that kind of stimulation. Never mind that millions from the first stimulus cannot be found and that billions more have yet to be spent. And how soon Democrats forget their once-great concern about burdening future generations with debt and dependency.

President Obama’s budget has projected deficits of $9.1 trillion over the next decade. Brian Riedl of The Heritage Foundation has looked into it and found the numbers to be inaccurate and misleading. What the president’s budget ignored is an additional $4 trillion in likely additional spending, which excludes, says Riedl, the following:

• Additional discretionary spending ($1,545 billion)

• Health care reform ($595 billion in spending and $583 billion in revenues). And that’s just for starters. As we have seen with Medicare, initial projections by the government, no matter who runs it, are almost always wrong.

• Additional cap-and-trade outlays and revenues ($821 billion in spending and $214 billion in revenues).

• Extending “expiring” entitlements ($216 billion in spending). Notice that once anything becomes an “entitlement,” ending it is a virtual impossibility.

• Net interest expenses resulting from the increased deficit spending ($251 billion in spending). Please read that last one again. We the taxpayers are going to be forced to spend $251 billion in interest on the debt because our government cannot do what every American must do: control spending.

• More realistic interest rates ($1,328 billion in spending and $65 billion in revenues).

That’s how the administration gets to $9.1 trillion. Remember, this was going to be an honest and transparent administration.

Brian Riedl says the reality of the president’s budget over the next decade is much different from the already outrageous spending to which it admits. According to Riedl’s analysis, the President’s budget agenda would actually result in:

• An additional $5 trillion in spending, $1 trillion in revenues and $4 trillion in deficits over the next decade.

• Budget deficits adding $13 trillion to the national debt over the next decade. Again, re-read that figure. Say it out loud. Repeat it to your spouse-partner-kid (the kids will be paying for this) and your neighbor.

• The national debt held by the public surpassing $20 trillion by 2019, reaching nearly 100 percent of gross domestic product (GDP).

• Annual budget deficits rising to nearly $3 trillion by 2019.

• Spending surpassing 28 percent of GDP by 2019, shattering the peacetime record set this year.

• Washington spending more than $37,000 per household in 2019, compared with $25,000 per household (still too high) in 2008.

This is why so many are angry. This administration is more than mortgaging our future. It is bankrupting it, all in the name of taking care of us. The best thing government can do for us is to get out of the way and let us care for ourselves. These numbers are unsustainable. They are outrageous. And they will become a reality unless enough Americans rise up and say they are not going to take it anymore.

It’s our money, not theirs. They are now stealing it before we make it.

Let’s hear some outrage about this. Let’s sustain it through the next three election cycles, beginning next month with the governors’ races in New Jersey and Virginia. If we don’t, the future belongs not to us, but to China, Japan, Qatar, Venezuela and Saudi Arabia, among others — all holders of our national debt.

Comments

RETICENT_IRREVERENT 4 years, 6 months ago

He is Nobel Peace Prize winner damnit. Who could possibly be in the position to second guess him?

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tbaker 4 years, 6 months ago

43 cents of every dollar spent by our federal government is borrowed. Our three big entitlement programs are now or nearly bankrupt. They face nearly $60 trillion dollars in unfunded liabilities. Countries are talking about, and actually have refused in some cases, to buy our debt. OPEC is talking about no longer selling oil in US dollars. Never in our history has so much of our debt been "monetized" (printed money of no real value). The US has the second highest corporate tax rate in the world. $12-14 trillion US-owned dollars are presently off-shore and not in our economy because of our tax environment. The value of our dollar has been and continues to fall.

Congress is suicidal and has long ago ignored their enumerated powers. Nothing restrains them. This madness is unsustainable and every clear-thinking person can see it.

Pass the FairTax and never vote for an incumbent.

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Liberty_One 4 years, 6 months ago

guardBack (Anonymous) says…

"As an economist, none of you know what you're talking about."

If you're what passes for an economist these days it's no wonder our economy is in such trouble.

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avoice 4 years, 6 months ago

guardBack, you were making complete sense until you got around to telling us to support Brownback. You seem like a very sensible person. Better do some further checking on your candidate and get back to us.

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SettingTheRecordStraight 4 years, 6 months ago

I used to think buying canned food, bottled water and gold was for the loonies. Now I'm beginning to wonder.

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TheGreatSantini 4 years, 6 months ago

Now is the time for government to shrink, the population cannot afford to support more non-value–added government.

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guardBack 4 years, 6 months ago

As an economist, none of you know what you're talking about. I feel that you hate the man because he is a democrat, not because you actually dislike, (or for most of you, even understand) what he is doing. I am a Republican also, by the way.

The last administration spent us into a bottomless hole, with foreign debt mounting and homeland manufacturing down from 75% of the GDP in 1998 to 15% in 2005. We have an economy now that produces very little but paper, and such a system does not react well to the inevitable swings of economics.

Furthermore, the stimulus packages that have been enacted, and the one that is currently under discussion are not bad on their own. So long as Barak Hussein Obama (way to use the full name, he has a name like Saddam he must be an evil Muslim, right, sensing the sarcasm are we) avoids protective tariffs that require response in kind from other countries which is one of the main governmental programs that pushed the stock market crash of 1929 into the Great Depression the American spirit will find a way to get the economy back on track.

If you despise the man because of what he is, and not what he does, then speaking as a patriotic American, sit down and shut your mouths. The last thing we need is a disunited nation as we are trying to get out of recession and finish the war in Afghanistan. We complained about it for eight years when the Dems were attacking President Bush. It's our turn to practice what we preach. We lost the last election, if you want to change things, work for Brownback's gubernatorial campaign, vote, encourage your friends to vote. Don't be sore losers like the Dems were in 2000 and 2004.

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TheGreatSantini 4 years, 6 months ago

What do you expect from someone who never worked or paid for anything in his life, it is not his fault he doesn’t understand that money and wealth are created by those who work and has to be paid back.

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sierraclub 4 years, 6 months ago

Obama has done nothing wrong. He will save our country. Merrill is right!!

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Liberty_One 4 years, 6 months ago

Marion (Marion Lynn) says…

"Barack Hussein Obama needs an impeachment proceeding."

You can't impeach him unless he's committed a crime, which, as far as I know, he hasn't. Political impeachment is a bad precedent. The correct way to go about removal is to vote him out.

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Richard Heckler 4 years, 6 months ago

Want to talk impeachment eh?

The dollar may be trouble in fact it may be deemed worthless in many circles. Jobs jobs jobs is the central issue. Reagan/Bush began the big push of shoving jobs beyond our borders. Consequently millions upon millions lost jobs that have yet to be replaced.

FACE IT the USA needs 20 million new jobs with NEW INDUSTRY as the source.

USA citizens have got to say SCREW IT we don’t need bi-partianship WE NEED JOBS and WE NEED NEW INDUSTRY! T

For the new administration it is about how Bush/Cheney wrecked the economy. It is about how Bush/Cheney and their worshippers being idiots trying to blame Obama for the economy After Bush/Cheney managed to put 8 million people out of work.

This is about the RINO party that took over the republican party and wrecking the good republican name. This RINO party is neither fiscally responsible nor socially responsible. RINO's have taken over our city,state and federal governments. RINO's represent Reaganomics = Wreckanomics by way of tax favors, war and financial scandals.

It's about the NEW RINO party that first entered the scene in 1980 which has cost the nation 15-20 million USA jobs.

This is the problem:

  1. The Reagan/ Bush Home Loan Scandal http://rationalrevolution0.tripod.com/war/bush_family_and_the_s.htm

  2. The Bush/Cheney Home Loan Scandal http://www.dollarsandsense.org/archives/2009/0709macewan.html

  3. What did Bush and Henry Paulson do with the bail out money? http://www.democracynow.org/2009/9/10/good_billions_after_bad_one_year

  4. Why did the RINO Lie About Social Security? http://www.dollarsandsense.org/archives/2005/0505orr.html

  5. Reagan/Bush Iran-Contra Secret Weapons Deal

  6. http://www.gwu.edu/~nsarchiv/nsa/publications/irancontra/irancon.html
  7. http://www.pbs.org/wgbh/amex/reagan/peopleevents/pande08.html

  8. Reagan/Bush - Bush/Cheney Weapons Deals

  9. http://www.commondreams.org/views04/0208-05.htm
  10. http://www.inthesetimes.com/article/4120/we_arm_the_world/

  11. Nixon Watergate Spy Scandal http://www.washingtonpost.com/wp-srv/politics/special/watergate/index.html

  12. Bush/Cheney PNAC foreign policy document, "Rebuilding America's Defences," openly advocates for total global military domination. Many PNAC members held highest-level positions in the George W. Bush administration. http://www.sourcewatch.org/index.php?title=Project_for_the_New_American_Century

  13. $9 Billion Lost In Iraq http://www.cbsnews.com/stories/2006/02/09/60minutes/main1302378.shtml

  14. Thousands of Weapons Lost In Iraq May be Going To Taliban http://www.washingtonpost.com/wp-dyn/content/article/2009/02/11/AR2009021103281_pf.html

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jayhawklawrence 4 years, 6 months ago

Here is the main problem with Cal and others like him.

His only solution is to cut taxes and to destroy the current administration any way he can. He knows who butters his bread. It is complete BS.

On the other hand, the Republicans and Democrats both are guilty as hell of trying to spend our money on things we don't need.

We cannot depend on corporate America to protect our interests as the Republicans seem to think. They have become international corporations. They don't need anything except our money. They have no loyalties other than the bottom line. That is why we need responsible politicians who will actually start to govern and protect our interests because nobody else is going to do it.

Who are these politicians working for anyway? Who are these columnists working for if not us?

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Marion Lynn 4 years, 6 months ago

Barack Hussein Obama needs an impeachment proceeding.

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Liberty_One 4 years, 6 months ago

jayhawklawrence (Anonymous) says…

"It's easy to sit back and snipe at the stimulus strategy for keeping our economy from crashing into a depression."

The stimulus is the exact kind of strategy that will ensure a depression, not prevent it.

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jayhawklawrence 4 years, 6 months ago

It's easy to sit back and snipe at the stimulus strategy for keeping our economy from crashing into a depression. The jury is still out and will be for quite awhile but there are many signs that the economy is on the mend.

As far as the debt load, it has more to do with government incompetence and neglect from previous administrations than anything Cal might dream up.

Allowing the US industrial base to wither and decline amidst increasing global competition is the main reason we are in the hurt we are in. While other nations have been competing like it's the Super Bowl everyday against our industries, the US has been led by politicians who would rather sit by the hot tub and suckle grapes with lobbyists.

For those who care to get a real understanding of where manufacturing has plummeted because of government ineptitude, here is a good book to read:

"Manufacturing: A Better Future For America."

This book is a compilation of essays by people who understand how we can become a strong nation again by focusing on competing in the global economy instead of allowing international companies and the politicians they own to sell us down the river.

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