Greg Richards of the American Thinker zeroes in on one of the most “astonishing” things President Obama said during his debt-ceiling press conference on Friday: “I have already said I am willing to take down domestic spending to the lowest percentage of our overall economy since Dwight Eisenhower.”
Although Richards couldn’t recall Obama ever saying any such thing before, he eagerly dove into the archives to find out what percentage of the 1950s economy President Eisenhower was spending. It turns out the average spending level of the Eisenhower Administration was roughly 18%.
Since Obama is currently spending well over 25% of GDP, that means he just declared himself in favor of spending cuts worth over 7% of our national economy. Our Gross Domestic Product is around $15 trillion, so that works out to $10.5 trillion in cuts over the next decade, which is even better than Republican Senator Tom Coburn’s big new proposal to cut $8 trillion in spending.
In fact, since the government current spends $3.7 trillion per year, lopping over a trillion bucks a year off the federal budget would mean slashing federal spending by a whopping 28%. By contrast, refusing to raise the debt ceiling at all would require 44% spending cuts.
President Obama’s bold spending cut plan still would not wipe out the deficit, which stands at $1.6 trillion per year, so the national debt would continue to grow. Nevertheless, it’s an exciting proposal. I don’t understand why nobody noticed when he brought it up earlier. All that remains is for the President to produce a detailed list of exactly what he would cut, to trim the government back to Eisenhower levels.
Since he claims to have expressed this idea previously, I’m sure such details are ready for publication, after a few minor adjustments. I’ll bet he could have them on the table before Congress votes on the Balanced Budget Amendment this week. I can hardly wait!