You are here

Obama's No-Cut Deficit Reduction

This article first appeared on Feb 14, 2011.

For those who believe that Obama’s 2012 Budget submission will have any effect on our deficit, there is also unicorns, Santa Claus, and the Hollow Earth Theory for your to believe.  The math simply does not work.  President Obama knows it; his shills in the media know it; anyone with basic skills in addition and subtraction know it.
Today, he submitted a $3.7T budget which includes what will (by THEIR OWN estimates) be an all-time high budget deficit of $1.6T.  Using their 10 year estimates, his administration claims that (based on their plan) they will lower the deficit $1.1T (OVER 10 YEARS)!
Yes, you read that correctly.  2012 budget estimated to spend over $3.5 TRILLION almost half (45%) of which will be NEW deficit spending under their promise that we will be cutting just over $1T from the deficit over the next decade.  
Lost in the shill and spin (but not in the basic mathematic numbers) is the fact that under this "belt-tightening", "fiscal responsible" plan we will INCREASE spending over $8T (above current levels) adding over $13T to our current debt (which is now estimated at around $14T).  Effectively, by his own numbers, we will DOUBLE our existing debt and be no closer to a sustainable economic & fiscal model than we are today.
In submitting this budget, Obama ignored most of the recommendations of his OWN budget / deficit commission who rightly noted that any real attempts to address our budget deficits will have to focus on the out-of-control growth in entitlement spending.  Frankly, America needs to take steps to control the expansion of entitlement programs instead of (as Obama has oversaw) expanding entitlements further (see: ObamaCare). 
This budget is (and rightly should be) a non-starter labelled Dead On Arrival!