The deficit could also double our GDP by 2037. At that point, it’s Bill Paxton/Aliens time: Game over, man.
The federal debt is expected to be 70% of the gross domestic product by the end of this year, and could be double the GDP by the year 2037 unless major changes are made, the Congressional Budget Office reports.
“Over the past few years, the federal government has been recording budget deficits that are the largest as a share of the economy since 1945,” says a new CBO report. “Consequently, the amount of federal debt held by the public has surged.
“By the end of this year,” the report added, “CBO projects that the federal debt will reach roughly 70 percent of gross domestic product (GDP), the highest percentage since shortly after World War II.”
Claims that Obama has cut the deficit: Lies.
The Romney campaign reacts:
“Today’s CBO report confirms that President Obama has placed us on a path to fiscal ruin. This is a President who promised to cut the deficit in half, but proceeded to run four consecutive trillion-dollar deficits and accumulate nearly as much publicly held debt as all prior presidents combined. Instead of displaying leadership, the President has proposed a new budget that Congress rejected unanimously. Instead of tackling entitlement reform, he has made clear that he has no plan for addressing the challenge. It is immoral to place such a burden on future generations, and Mitt Romney will not allow it to continue.” –Lanhee Chen, Romney for President Policy Director
Yet liberals tend to advocate that Obama’s stimulus wasn’t large enough, and that we need yet more federal spending to repair the economy.
What amazes me about this is that both parties in Congress can’t figure out how to cut spending other than defense and social security. The waste just at the GSA can tell you where to look for cuts. Eliminate the GSA, the EPA, Energy, Education, Arts and foreign aid to people that hate us for starters. There, saved a few kabillion dollars.
Boggles the mind they can’t figure it out.
GSA, the EPA, Energy, Education, Arts and foreign aid= at most 10% of federal spending, and since you’re not proposing cutting these things but rather fine-tuning them, you’ll save a couple nickles and dimes by going after these. Nickles and dimes are nice and all, and maybe cutting these could really drop federal spending $300-500 billion, but that isn’t going to cut it.
Social Security (20% of spending and growing), Medicare (%20 of spending and growing), and defense (20% spending and holding steady) have to be touched, and touched drastically. It’s just the way it is. Obama and the Democrats refuse to, so let’s give Romeny and the GOP a shot at it in 2012.
That’s not quite right. The aggregate debt doesn’t consume output within a given year. You’re confusing deficit with debt.
Yup you’re right. I’ve fixed it.
Hold it. Right now, it looks like the 2012 deficit will be about 1.3 trillion and the GDP will be about 15.5 trillion. That is a deficit to GDP ratio of about 8%.
The national debt, *excluding intra-governmental notes*, will be about 11 trillion. That is a debt to GDP ratio of about 71%.
So isn’t the headline still very misleading? Wouldn’t it be more correct to say that “National Debt Could Be At 70% of Our GDP by the End of This Year”?
CBO (and Romney) don’t even get it. The national deficit in other countries includes much of what we don’t count such as debt incurred by state and local, independent districts, certain fed agencies, and of course, the Fed Reserve. Add these up, and our annual deficit is higher than any economy ever. Total government spending and borrowing of alll types probably is 70% of GDP this year!
I understand spitting on the black man living in YOUR White House is paramount, but what about the facts? Are they important? Consider:
1) Bush kept the illegal wars off budget. They were not included until Obama added them back in and voila! The debt went up. It was always up, Bush simply hid the numbers so you would think he was keeping the debt in check. He hid them FROM YOU!
2) Medicare part D was also paid for off budget. No accounting for the massive expense was added to the budget. When Obama came into office, he added the expense to the budget and voila! The debt went up. It was always up, Bush simply hid the numbers so you would think he was keeping the debt in check. He hid them FROM YOU!
3) Tax cuts for the 1% was paid for off budget. Those expenses were not included in the budget until Obama came in and added them back in. Voila! The debt went up. It was always up, Bush simply hid the numbers so you would think he was keeping the debt in check. He hid them FROM YOU!
****Are you seeing a pattern here?****
When you buy a car, do you keep the monthly payment off budget? If you are hiding the expense from your wife, you probably would (like Bush was hiding our budget from YOU). If you want your budget to accurately reflect your monthly expenses, you will add it in. That is what Obama did. If you look at a chart of expenditures for the Obama administration, you will see a massive downward trend in spending. That is a fact – regardless how you feel about black Americans.
You can remain fooled or become educated – you have a choice. Bush hid expenses from you and lied when asked about it. He played you for a fool. Do you enjoy being made fun of? Please try and remove yourself from the GOP cult. It is doing you no good.
This is probably a waste of time but do you really believe that if I disagree with the policies of a black president and therefore criticize them, that I’m “spitting on a black man?”
If I also disagree with Harry Reid am I then “spitting on a white man?”
Why does everything boil down to race with you and others who agree with your point of view? When you look at everything through the prism of race, that make you a “race-ist.” That’s the definition, like it or not.
Try to understand that the vast majority of people who are politically onservative don’t care whether Barack Obama is black, white, green or plaid. They disagree with his big government, big regulation, anti-capitalist agenda and its obviously damaging results.
Bush has nothing to do the creation of the budget – it is created by the Congress. Under Obama, there has been no budget, because the Senate has refused to pass one.
Tax cuts for the 1% (and every other % who pay taxes)were “paid for” by increased tax revenues. Congress increased spending by more than the increase in revenues, which resulted in the deficit.
Under Obama, the national debt has increased more than under all of the previous presidents combined.
You can remain fooled or become educated – your choice!