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We Need A Budget Which Makes Sense

March 31, 2009

President Obama plans to borrow about $7 trillion over the next ten years to finance all of his spending plans. Yet, he will accrue these enormous deficits by spending a lot early, and spending a lot late, continues Hassett:

The deficit this year in his budget is projected to be about $1.7 trillion, a bit larger than the entire Canadian economy and a bit smaller than the Italian one.
The deficit in 2019, the 10th year of his projected budget, is $712 billion, about two-thirds the size of the Indian economy.
It’s worth mentioning that these deficit numbers are likely much lower than what would occur if many of President Obama’s policies were adopted.
The Obama budget has an astonishingly rosy outlook for the economy, especially if one considers the likely impact of all of this spending.
While the president likes to blame the Bush administration for all of his troubles, the fact is that the Congressional Budget Office (CBO) 10-year budget forecast called for a 10-year surplus of a few hundred billion dollars. The economy has taken some of the steam out of revenues in the first few years, but the spending increases do the majority of the work.
from NCPA

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