You might have entertained some hopes that our budget deficit would decline a bit in coming years. Well, not if Barack Obama has anything to say about it!
Much will be said about the President’s ridiculous budget proposal for 2012 over the coming days, but the part that really jumps out is that he’s projecting another $1.33 trillion deficit – and remember, his “projections” tend to be filled with a lot of rosy assumptions. Right off the bat, the Congressional Budget Office looked over Obama’s budget proposal and said the deficit would be more than $1.4 trillion. We’d end up with a national debt of about $23 trillion by 2021.
Both Obama and the CBO make some rather generous assumptions about GDP growth, and take accounting tricks – such as claiming huge “savings” from military operations that were scheduled to end anyway – far more seriously than they should. But the biggest mistake they always make is assuming huge tax increases will bring in anything close to the anticipated revenue. Obama’s looking to rake in a couple of trillion dollars from tax hikes, but those revenue targets will find ways to avoid confiscatory taxation, and our Gross Domestic Product will grow less than anticipated as a result.
Jim Geraghty of National Review noticed something interesting about the amount of money we’re paying to finance Obama’s astonishing debt levels: we’ll spend more on debt interest in the first four months of the current fiscal year than the entire deficit for 2007.
Certainly the final years of the Bush presidency prepared the launch pad for Obama’s endless trillion-dollar deficits, but for all the wailing about the mess Obama supposedly inherited from his predecessor, there’s absolutely no doubt whose hand is on the helm of the starship U.S.S. Insolvency as it hurtles past the Moon and enters interplanetary space. Obama used to promise he’d cut the deficit in half. Now he throws around ridiculous deficits that have very little chance of conforming to even his bloated predictions, when he can be bothered to discuss the top of federal budgeting at all.
You might think that blowing over $450 billion in a single year just to finance the growing national debt would be a powerful argument against reckless spending, but you’re thinking too small. On the contrary, liberals will use those mandatory billions as leverage for more tax increases, and to oppose any ideas for fiscal restraint that could be portrayed as making Washington’s finances look unsteady, thus jeopardizing our credit rating.
“We just can’t cut our way into growth,” said this absurd President, in defense of his high-rolling make-believe budget. No, you’ll never be allowed to imagine that you could, because that would lead to the logical conclusion that swollen government depresses growth… and people like Obama can’t have you thinking that way, can they?
Gigantic mandatory expenditures on debt will remain one of their most potent weapons against dissent. They love having billions in spending that simply cannot be challenged, instead becoming an argument for eternally increasing the size of the mega-government that pays those bills. Look how easily Americans swallowed getting to half a trillion dollars in annual debt service. Obama’s budget proposal is based on the assumption they’ll swallow an even trillion without too much of a fuss. Sadly, that might be the least ridiculous assumption in his budget.