Reason TV: This budget won’t “win the future”

posted at 10:55 am on February 17, 2011 by Ed Morrissey

On Tuesday, Reason TV released its response to the budget proposal from Barack Obama this week that has been widely panned across the political spectrum as both pusillanimous and unrealistic. Nick Gillespie gives three reasons why this budget won’t “win the future,” but it’s the second that should get the most attention:

The economic projections of the new budget are, simply put, insane — and not just on economic growth.  Andrew Stiles noted the big structural issue on bond rates and the White House assumptions that are not just unreasonably optimistic, they’re contradictory as well:

A quick rundown, by the numbers:

3 percent: Interest rate on 10-year Treasury notes assumed in Obama’s budget for 2011.

3.4 percent: Interest rate on 10-year notes predicted by the CBO last year.

3.65 percent: Actual interest rate on 10-year notes, as of last week.

$1.3 trillion: Amount of debt that CBO forecasts will accrue over ten years for every percentage point the assumed interest rate falls below the actual rate.

That means if the current rate stays at around 3.6 percent for the remainder of 2011, as opposed to the administration’s rosy projection of 3 percent, more than $800 billion will be added to the debt over the next decade. That alone would almost completely undo the $1.1 trillion in deficit reduction projected in the White House budget.

Rep. Mick Mulvaney (R-SC) ripped into OMB Director Jacob Lew for these assumptions, and when Lew said they represent “mainstream assumptions,” Mulvaney told Lew to talk to the CBO:

Somebody’s “whacked out,” and it doesn’t appear to be the CBO or Mulvaney.


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W.T.F. I keep asking myself that question everytime I wake up and realize that people still support this clown.

WTF

search4truth on February 17, 2011 at 11:01 AM

Its about time the Rs decide to grow a pair and quit being accommodating.

The MSM is beginning to look more and more stupid by trying to provide cover for Obozo.

belad on February 17, 2011 at 11:03 AM

After seeing todays unemployment figures how can anyone project any revenue growth at all. Taking more from tax payers doesn’t result in revenue growth it results in more unemployment.

fourdeucer on February 17, 2011 at 11:07 AM

This budget won’t “win the future”

Anarchists beg to differ.

flyfisher on February 17, 2011 at 11:10 AM

One of the first albums I got as a kid was in 1978, Steve Martin’s Wild and Crazy Guy.
One of the jokes in there had Steve as the quarterback who’s coach never took his advice, including “I like to punt on first down.”

That was a joke in 1978, today it is reality. We have a president who likes to punt on first down.

rbj on February 17, 2011 at 11:11 AM

More proof that WTF does NOT stand for “Winning the Future“…

landlines on February 17, 2011 at 11:11 AM

What’s really funny to watch is the lib/dem talking heads trying to prop up this debacle of a budget. We used to be able to know they were lying by watching their lips move but now it’s the deer in the headlight look along with the empty words. It’s as if the mind is totally gone to mush. There must be something to this body language stuff after all.

Kissmygrits on February 17, 2011 at 11:16 AM

W.T.F. I keep asking myself that question everytime I wake up and realize that people still support this clown.

WTF

search4truth on February 17, 2011 at 11:01 AM

Their canned response is that you don’t know his policies won’t work until you’ve given them a chance.

Unconditional support.

John Deaux on February 17, 2011 at 11:16 AM

There cannot be growth until all of the policies which:

1. Starve the US of all effective energy sources

and

2. Declare all-out war on businesses: especially those with employees

…are completely REVERSED!!

landlines on February 17, 2011 at 11:17 AM

Not to mention the forecast of 5% GDP growth built into the White House budget assumptions, which Stuart Varney pointed out on Greta’s show last night. When we buy that, we’ll own a Bridge to Nowhere.

Does anyone ever notice that on those projected deficit graphs, the deficit magically starts shrinking the year AFTER the current year? Then, the next year, the deficit increases again?

Cut the deficits and the spending NOW, not next year! With a machete or a chainsaw if needed!

Steve Z on February 17, 2011 at 11:20 AM

Their canned response is that you don’t know his policies won’t work until you’ve given them a chance.

Unconditional support.

John Deaux on February 17, 2011 at 11:16 AM

…sort of like:

You can’t KNOW that shooting yourself in the foot is harmful unless you’ve tried it multiple times on both feet with ever-bigger guns!!!

landlines on February 17, 2011 at 11:20 AM

The vote was another instance in which some of the new legislators, including several affiliated with the Tea Party, broke ranks with the House speaker, John A. Boehner, Republican of Ohio, where the engine provided more than 1,000 jobs.

From the NYT

fourdeucer on February 17, 2011 at 11:25 AM

fourdeucer on February 17, 2011 at 11:25 AM

SORRY

fourdeucer on February 17, 2011 at 11:26 AM

Depends on what your definition of “future” is, solid economic growth or a scorched wasteland.

This is what we get for installing a mail-room clerk as CEO of the largest, richest, most important company in the world.

Thank 52%’ers, you really gave us a good one this time.

Bishop on February 17, 2011 at 11:32 AM

Good for this congressman, but I hope he is just being PC when he says he believes Obama is not intentionally destroying our economy.

GaltBlvnAtty on February 17, 2011 at 11:44 AM

Despite Mr. Mulvaney’s fairly strong statements in the 2nd video above, it is because of the last reason in Gillespie’s video up top that I have little confidence in the Republicans either.

The Republicans have to admit that they, in part, created this mess during the 1990s, or got the ball rolling, prior to Pelosi’s Congress starting to really shoot their cash cow in the head.

If they do not start to really blow this budget apart… including defunding Obamacare… and truly start pounding the message in the media that this HAS to be done, Christie style, unapologetically, while slapping down their opponents – then this is going to happen:

nothing.

We will be reminded of a few things. (1) Save for Ryan, and a few other Representatives & Senators, that the Republicans have no balls in their leadership to truly cut back with respect to spending. (2) The Republican leadership is complicit with Obama in trying to destroy this country.

Are we going to literally have to spank these people? Because we cannot afford to wait too much longer (every election costs us at least another 2 years) before this mess becomes irreversible & takes more than a few generations to reverse…

Danny on February 17, 2011 at 11:51 AM

I just like saying “pusillanimous.”

pain train on February 17, 2011 at 11:51 AM

Anyone else starting to realize that they are like the frog in a pot of slowly boiling water?

Danny on February 17, 2011 at 11:52 AM

Their canned response is that you don’t know his policies won’t work until you’ve given them a chance.

Unconditional support.

John Deaux on February 17, 2011 at 11:16 AM

…sort of like:

You can’t KNOW that shooting yourself in the foot is harmful unless you’ve tried it multiple times on both feet with ever-bigger guns!!!

landlines on February 17, 2011 at 11:20 AM

Perfect!

Liberal Logic 101

(I know; it’s an oxymoron.)

hillbillyjim on February 17, 2011 at 11:54 AM

The depressing part is that, as Nick says, the GOP isn’t much better. This is why we need to forget about the stupid culture wars and get everyone we can on board with the need to deal with our economic mess!

MJBrutus on February 17, 2011 at 12:02 PM

Not only is Obama lying. Not only do we know he’s lying. But he knows we know he’s lying and he still keeps shoveling it out there with a smile on his face, not missing a beat. We are truly through the looking glass.

tommyboy on February 17, 2011 at 12:28 PM

The depressing part is that, as Nick says, the GOP isn’t much better. This is why we need to forget about the stupid culture wars and get everyone we can on board with the need to deal with our economic mess!

MJBrutus on February 17, 2011 at 12:02 PM

This is why we need a Balanced Budget Amendment. Congress operates under the unfounded assumption that if you do serious cuts, you’ll get clobbered in the polls. Thus, the can gets endlessly kicked down the road, and even Republicans are too scared to seriously tackle the issue.

Look at states and cities. They must balance their budgets by law–thus, by necessity, state-level politicians are much less bashful about making deep cuts to state budgets (and, except for Illinois, NOT raising taxes). Those politicians (e.g. Chris Christie) get subjected to an endless parade of horribles in the media (“children will starve!!! grandma will freeze to death!!!”) and, yet, their poll numbers remain strong.

Outlander on February 17, 2011 at 12:57 PM

I think a 50% across the board cut for all entitlements would be a good start.
Then,
25% cut for military while actually increasing ships and men.
(just eliminate the waste)
100% cuts for
U.N.
Foreign aid
all BS stuff like epa, pbs, npr, et al.

Slash taxes to the bone and put tariffs on anything we can produce here e.g. oil & steel.

Come down hard on any employer that hires illegal workers.

End all public employee unions.

esnap on February 17, 2011 at 1:21 PM

Debt and deficit threads are always pleasantly troll-free.

Chuck Schick on February 17, 2011 at 1:31 PM

“These numbers don’t make sense to you because you are looking at them” strategy by liberal dimocraps and this bumbling Administration has approached an epic fail. The SanFran Nan logic of you have to pass it to see what’s in it didn’t work here. And as usual, ol’ Jacob seems to think if he and the rest of the administration keep repeating the BS that people will believe it and it will be true. You see uprising in the middle east but you may be witnessing the beginnings of uprising on capitol hill. One can only hope.

Also, after George “the midget” Stephanopoulos disgraceful performance with Michele Bachmann I think the media might consider that they too are rapidly being put on notice (as if their ratings aren’t notice enough).

PatriotPete on February 17, 2011 at 1:42 PM

I think a 50% across the board cut for all entitlements would be a good start.
Then,
25% cut for military while actually increasing ships and men.
(just eliminate the waste)
100% cuts for
U.N.
Foreign aid
all BS stuff like epa, pbs, npr, et al.

Slash taxes to the bone and put tariffs on anything we can produce here e.g. oil & steel.

Come down hard on any employer that hires illegal workers.

End all public employee unions.

esnap on February 17, 2011 at 1:21 PM

Your suggestion for cutting the military’s budget casts doubt upon all your suggestions.

Slowburn on February 18, 2011 at 12:11 AM

I think a 50% across the board cut for all entitlements would be a good start.

So you’re saying entitlements are basically good uses of your tax dollars if they spend 1/2 as much?

Then, 25% cut for military while actually increasing ships and men. (just eliminate the waste)

Exactly what waste are you talking about? Didn’t we hear a similar argument about how ObamaCare would save money by eliminating waste? Sucker argument.

100% cuts for U.N. Foreign aid all BS stuff like epa, pbs, npr, et al.

Now you’re hitting on something here. I think a similar solution should be considered with entitlements.

Slash taxes to the bone and put tariffs on anything we can produce here e.g. oil & steel.

You mean raising tariffs like we did with Smoot Hawley in the ’30s? Now, that worked out well didn’t it?

Come down hard on any employer that hires illegal workers.

Yeah, because they’re the reason the federal government is running >$1.5T deficits: the greed of small businessmen.

End all public employee unions.

yep, ok, I can go along with that one.

esnap on February 17, 2011 at 1:21 PM

JSGreg3 on February 18, 2011 at 4:02 PM