Surprise CBO report: United States on an “unsustainable” budget course

posted at 3:21 pm on September 17, 2013 by Erika Johnsen

Here’s some oh-so-pleasant news to keep in mind as Democrats casually insist that we should simply raise the debt ceiling again and again and again, with no end in sight, and fiercely rip Republicans for even daring to suggest budget cuts to federal programs.

Congressional budget analysts on Tuesday issued a new warning about the long-term U.S. budget outlook, just as lawmakers and the White House are staring at a pair of fiscal confrontations.

The nonpartisan Congressional Budget Office said that the U.S. national debt is now 73% of gross domestic product, the highest in history except for a period around World War II. The figure is twice the percentage it was at the end of 2007. Read the CBO report.

Modestly lower spending, an improving economy and increased collection of income, payroll and corporate taxes have helped narrow the government’s deficit this fiscal year. If current laws remain in place, CBO said, the debt will decline “slightly” relative to GDP over the next several years.

But CBO cautioned that long-term challenges remain. It warned that growing future deficits will push the debt to 100% of GDP 25 years from now. And under another scenario that envisions changes being made to some laws — including removing the so-called automatic budget cuts known as the sequester — the debt would be even higher, at nearly 190%, by 2038.

While sequestration and Americans’ record-high tax revenue has had a mitigating impact in the near term — news on which the White House has been quick to seize — the entitlement implosion is still stubbornly looming in the future (particularly the incoming strain on Medicare and Social Security) while we accomplish approximately zero in addressing it.

What’s more, as James Pethokoukis points out at AEI, the debt itself is hardly the long and short of it. The CBO notes that the above forecast didn’t factor in “the harm that growing debt would cause to the economy,” and, well…

And when you take into account stuff like how deficits might “crowd out” investment in  factories and computers and how people might respond to changes in after-tax wages, you find the debt is much, much larger, closer to 200% of GDP.

The CBO:

“Projected budgetary outcomes under the extended alternative fiscal scenario are worsened by the economic changes that result from its policies. With the effects of lower output and higher interest rates incorporated, federal debt held by the public under the extended alternative fiscal scenario would reach 190 percent of GDP in 2038—about 80 percentage points greater than that under the extended baseline with economic feedback— according to CBO’s central estimates.”

I.e., the side effects of our mounting debt and burdensome policies will continually, directly, and increasingly contribute to economic losses. This is not some distant pain in the neck we can worry about in the future — we need to worry about this now.


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libfreeordie blames austerity. Unless he doesn’t. Depends.

hawkdriver on September 17, 2013 at 3:24 PM

All your moneys belongs to us.

davidk on September 17, 2013 at 3:26 PM

Obviously, we have to spend our way out of this problem. The sequestration is what’s driving our higher debts.

Sincerely,
nearest lib

kenro85 on September 17, 2013 at 3:26 PM

Sobering point, now Obama will call for more taxes not less spending.

meci on September 17, 2013 at 3:26 PM

I.e., the side effects of our mounting debt and burdensome policies will continually, directly, and increasingly contribute to economic losses

I.e. I.e. we need to address the really REALLY important stuff. Like gun control, whatever the social cause Du jour of the year is, and more regulation and oversight.

All that other stuff is just partisan distractions from evil Republicans and special interests.

Gatsu on September 17, 2013 at 3:28 PM

25 years? Try right now. $17 trillion and HOW much in unfunded liabilities? $100 tril?

Inflation and high interest rates should hit riiiight about the time a Republican hits the WH and cleans house.

Reminds me of my house when I bought it. Looked fine as long as the A/C was on. As soon as I took possession, I had to have the floors thoroughly steam-cleaned.

Lanceman on September 17, 2013 at 3:29 PM

This makes me want to buy land, and ammo.

Meric1837 on September 17, 2013 at 3:30 PM

According to plan.

Elections have made scant impact on this trend.

Akzed on September 17, 2013 at 3:31 PM

We haven’t even begun to feel the effects of our outrageous debt since interest rates are being kept artificially low (the lowest ever) and the Fed is buying up all the bonds that the Treasury issues. Our national debt is more concentrated in the shortest maturities than ever before and is more exposed to interest rate risk than ever before. Talk about the perfect storm.

When interest rates return to normal (and they will go far past that) … whoa, Nelly!!

ThePrimordialOrderedPair on September 17, 2013 at 3:31 PM

If this had happened under Bush…

2008: Deficits Bad!

2013: Deficits awesomely cool saviors!

mankai on September 17, 2013 at 3:31 PM

“Are you tellin’ me we have to spend more money to work our way out of this? Yes. That’s exactly what I’m sayin’.”

– Vice Precedent BiteMe

Lanceman on September 17, 2013 at 3:31 PM

Its all over but the shootin’…

PatriotRider on September 17, 2013 at 3:31 PM

Time to start paying it down, Obama.

BuckeyeSam on September 17, 2013 at 3:31 PM

Is it a “surprise” because the politicians don’t believe it, or because the CBO would dare to report it? I mean, this really can’t come as a surprise to anyone, right?

Fenris on September 17, 2013 at 3:33 PM

Every fiat currency in the history of civilization has failed…100%…

PatriotRider on September 17, 2013 at 3:33 PM

Did they include the trillions that ObamaCare will flush down the crapper?

countrybumpkin on September 17, 2013 at 3:34 PM

I’ve long wondered who in the hell is stupid enough to loan us money? If its just us then quit since we’re broke. This robbing future generations will not turn out well so let me go record opposing it.

DanMan on September 17, 2013 at 3:35 PM

To even have a chance to survive whats coming GOTS…(get out of the system)…

PatriotRider on September 17, 2013 at 3:37 PM

The nonpartisan Congressional Budget Office said that the U.S. national debt is now 73% of gross domestic product, the highest in history except for a period around World War II. The figure is twice the percentage it was at the end of 2007.

And, that’s just the PUBLIC debt. The national debt is OVER 100%.

Resist We Much on September 17, 2013 at 3:38 PM

I would advise people with IRA’s, 401K’s, etc. to seriously stop and think about what just happened in Poland and consider the implication of what happens when a government seizes private assets. Right now there is over 3 TRILLION dollars just sitting there unused in all of those accounts. If you think for one minute that the Federal Government will not soon be looking at that amount of money to balance out the “income inequality” or some other social injustice then you are not being truthful with yourself. Heck, that amount of money alone could make Social Security solvent for another 20 years or so and kick that can way down the road.

They are going to take it, or tax it out of existence.

Johnnyreb on September 17, 2013 at 3:41 PM

This is not some distant pain in the neck we can worry about in the future — we need to worry about this now.

Good luck with that. I’m buying stock in Remington.

hawksruleva on September 17, 2013 at 3:41 PM

Here are a few steps we should take immediately (courtesy or the CA state assembly):

1. Make sure transgenders can choose which bathroom they want to use.
2. Raise the minimum wage.
3. Tax successful businesses.
4. Subsidize failing green buisnesses.
5. Trains, dammit, we need more trains!

Priorities, people.

mankai on September 17, 2013 at 3:43 PM

But, but, but just the other day Obama told Snuffy that he had halved the deficit, or something.

txhsmom on September 17, 2013 at 3:43 PM

This makes me want to buy land, and ammo.

Meric1837 on September 17, 2013 at 3:30 PM

The problem with buying land is politicians taxing it. I was thinking about buying some of the vacant lots in Detroit. I’d love to bet on the city’s future. But the yearly taxes and fees don’t make that practical.

hawksruleva on September 17, 2013 at 3:44 PM

Current total debt and unfunded liabilities are well over 70 trillion. 3 times GDP. Not 17 trillion. 70 Trillion.

oldroy on September 17, 2013 at 3:44 PM

Our elected “representatives” will not fix it.
There’s something to be said for ‘prepping’.

Dexter_Alarius on September 17, 2013 at 3:44 PM

They are going to take it, or tax it out of existence.

Johnnyreb on September 17, 2013 at 3:41 PM

Yep. Nazi Pelosi has been making noise to that effect for years now.

txhsmom on September 17, 2013 at 3:45 PM

And, that’s just the PUBLIC debt. The national debt is OVER 100%.

Resist We Much on September 17, 2013 at 3:38 PM

Believe me, in a few years, they’re going to come up with a new debt/GDP ratio which excludes all public debt owned by the Fed.

Public Debt/GDP Ex-Fed.

They’re rationalize that they really don’t have to pay the Fed because, um, they make their own money.

WisRich on September 17, 2013 at 3:45 PM

I would advise people with IRA’s, 401K’s, etc. to seriously stop and think about what just happened in Poland and consider the implication of what happens when a government seizes private assets.
Johnnyreb on September 17, 2013 at 3:41 PM

Yes, that seriously scares the heck out of me. And I realize it is coming, and probably sooner rather than later. I am more scared of my government now than I have ever been. How is it that a government of the people, by the people, and for the people became so out of control?

kenro85 on September 17, 2013 at 3:47 PM

Well, that was…..
UNEXPECTED !!!eleventy!11ZOMG!

connertown on September 17, 2013 at 3:52 PM

How about trying the popular “Detroit Solution”?

City leaders tried repeatedly to reverse sliding revenue through new taxes. Despite a new income tax in 1962, a new utility tax in 1971 and a new casino revenue tax in 1999 — not to mention several tax increases along the way — revenue in today’s dollars fell 40% from 1962 to 2012. Higher taxes helped drive residents to the suburbs and drove away business. Today, Detroit still doesn’t take in as much tax revenue as it did just from property taxes in 1963.

mankai on September 17, 2013 at 3:54 PM

Debt on 01.20.01: $5,727,776,738,304.64

Debt on 01.19.09: $10,628,881,485,510.23

An increase of: $4,901,104,747,205.59

Debt 01.20.09: $10,626,877,048,913.08

Debt 09.17.13: $16,738,502,722,145.90

An increase of: $6,111,625,673,232.82

Bush was in office for 2,921 days and he deficit spent per day: $1,677,885,911.40.

Obama has been in office for 1,702 days (through 09.17.13) and deficit spends per day: $3,590,849,396.73

Public debt on 01.20.09: $6,307,310,739,681.66

Public debt on 09.17.13: $11,965,887,207,931.11

Obama has increased the debt held by the public by $5,658,576,468,249.45 or 89.72% – EIGHTY-NINE & 72/100 in 1,702 days.

Every man, woman and child’s share of the national debt is now $53,995.17 – that’s a 79.99%— SEVENTY-NINE & 99/100 — INCREASE since Barack Obama’s Imaculation 1,702 days ago.

Total Debt = $16,738,502,722,145.90 and GDP = $16.2027 trillion (est)

Debt-to-GDP = 103.31%

Remember when Obama said this?

The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents – #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back — $30,000 for every man, woman and child. That’s irresponsible. It’s unpatriotic.

Well, I say this:

‘The problem is that the way Obama has done it in the last 1,702 days is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $10,628,881,485,510.23 from the first 43 presidents.

No. 44 has added $6,111,625,673,232.82 by his lonesome. So we now have over $16,738,502,722,145.90 of debt that we are going to have to pay back. $53,995.17 for every man, woman, and child.

If President Obama called President George W Bush irresponsible and unpatriotic for presiding over a $4,901,104,747,205.59 increase in the national debt over 8 years, then what does he think we should call him for spending $6,111,625,673,232.82 in 1,702 days?

Irresponsible and unpatriotic’ sound too mild in comparison; perhaps, ‘treasonous’ might be a more apt description of Mr Obama’s spending.

Resist We Much on September 17, 2013 at 3:57 PM

Yes, that seriously scares the heck out of me. And I realize it is coming, and probably sooner rather than later. I am more scared of my government now than I have ever been. How is it that a government of the people, by the people, and for the people became so out of control?

kenro85 on September 17, 2013 at 3:47 PM

The wife and I have quite a bit in our 401k’s and I am scared $hitless. If the government doesn’t just up and confiscate it like Poland did, I suspect that all of those tax free accounts are going to start being taxed as some form of income in the next few years. Something like ….add your year ending 401K account balance to your Adjusted Gross Income line 19, that is your new AGI, enter that amount on line 20, that is your taxable income for the year xxxx……That in my opinion of what I think will happen.

I can see the Fed going that way to make “income equality an achievable goal in the next xx years” from the evil rich people who have untaxed income, blah, blah……

I am on the verge of just taking the hit, cashing out and using the money to buy a bunch of waterfront property.

Johnnyreb on September 17, 2013 at 3:57 PM

This is not some distant pain in the neck we can worry about in the future — we need to worry about this now.

Surely you mean, after the next election.

It’s just how we roll.

There Goes the Neighborhood on September 17, 2013 at 4:00 PM

How come everything else we do the trendy lefties insist must be “sustainable”– except government spending?

de rigueur on September 17, 2013 at 4:00 PM

Can’t we just print more money

- average Obama voter

bsinc1962 on September 17, 2013 at 4:01 PM

There is no where to hide it. But before the government does that there will be an armed rebellion.

Zomcon JEM on September 17, 2013 at 4:03 PM

The CBO should not be called nonpartisan, it should be called incredibly naive. The CBO is the only group I know that can get away with posting the absolute best case scenario and run with it. How many every day people or even businesses plan out their budget on the absolute best case imagineable? I could win the lottery next month and not have to work a day in my life, but until then I still have to plan as if I will have to work and worry about bills, so I’m not going to go out and buy something frivolous just because I may have a little extra money at the moment and I may win the lottery next month.

MobileVideoEngineer on September 17, 2013 at 4:06 PM

When Obama is outing campaigning for his jobs plan, he always references “future generations”. It’s time to start using his words in regard to the budget and debt ceiling debates.
They should also demand that the President cancels his upcoming campaign stops and stay in Washington to hammer this thing out. If he refuses or expects them to write his plan, then they can expect a government shutdown, since the President has refused to do his job.
He can huff and puff all he wants, but he needs to be involved. His “uninvolvement” has caused this country many problems. (Libya, Syria, IRS, NSA, Fast and Furious, two military terrorist strikes, the Boston Marathon, etc.) His “I didn’t know about it until I read it in the newspaper” should tell you how his job is unimportant and how his golf game, vacations and Hollywood hobnobbing/fundraising is all he cares about.

djaymick on September 17, 2013 at 4:09 PM

Johnnyreb on September 17, 2013 at 3:57 PM

The federal government will ease into confiscation by first requiring a significant amount of the balance, or the ongoing contributions to IRA/401K or private retirement funds, to be used to purchase federal government financial instruments.

If you are patriotic, you have to support that, right?

slickwillie2001 on September 17, 2013 at 4:09 PM

I am on the verge of just taking the hit, cashing out and using the money to buy a bunch of waterfront property.

Johnnyreb on September 17, 2013 at 3:57 PM

for the reasons you state we held off investing the last year and put a pool in, my brother in law cashed out a whole lot of his savings and bought the 90 acres surrounding him…my hunch is there is a lot of this kind of thing occurring

DanMan on September 17, 2013 at 4:11 PM

The dems want more spending while still blaming the sequester for everything that goes wrong including the Navy yard shooting. Dear leader waived part of a law so he could send F&F guns to AQ in Syria, DiFi wants my .357, and taking 401K’s away is already on the horizon. Wake up.

Kissmygrits on September 17, 2013 at 4:16 PM

Its all over but the shootin’…
PatriotRider on September 17, 2013 at 3:31 PM

and lootin’

Cleombrotus on September 17, 2013 at 4:17 PM

Johnnyreb on September 17, 2013 at 3:57 PM

The federal government will ease into confiscation by first requiring a significant amount of the balance, or the ongoing contributions to IRA/401K or private retirement funds, to be used to purchase federal government financial instruments.

If you are patriotic, you have to support that, right?

slickwillie2001 on September 17, 2013 at 4:09 PM

They won’t confiscate the 401Ks or IRAs. They’ll simply mandate a percentage of such funds be invested specifically in government bonds to offset the tax break you’re getting.

And they’ll do that by regulating the providers of retirement plans. The actual owners of those plans won’t have any say, so they won’t be able to protest.

Then a few more years down the road, they will “save” the retirement plans by replacing the risky investments left in the funds with guaranteed returns from Social Security. Granted, the guarantee will come from the same government that is going broke, and will offer about a 2.1% interest rate — subject to further revision, of course…..

There Goes the Neighborhood on September 17, 2013 at 4:20 PM

I am on the verge of just taking the hit, cashing out and using the money to buy a bunch of waterfront property.
Johnnyreb on September 17, 2013 at 3:57 PM

Why waterfront? Wouldn’t farmland be wiser?

Personally, I’m thinking Alaska. Easier to defend and the hordes don’t like the cold or long distances.

Cleombrotus on September 17, 2013 at 4:21 PM

Believe me, in a few years, they’re going to come up with a new debt/GDP ratio which excludes all public debt owned by the Fed.
Public Debt/GDP Ex-Fed.
They’re rationalize that they really don’t have to pay the Fed because, um, they make their own money.
WisRich on September 17, 2013 at 3:45 PM

Can you (or someone) explain what the debt to GDP ratio is and why it’s important?

Cleombrotus on September 17, 2013 at 4:26 PM

Can you (or someone) explain what the debt to GDP ratio is and why it’s important?

Cleombrotus on September 17, 2013 at 4:26 PM

It means that we owe more than our entire annual economic output.

At some point, there is no turning back and, eventually, purchasers of our debt will demand higher interest rates, which will be passed onto consumers. It also means that you either enter into a moribund economy like Italy or a perpetual ‘Lost Decade’ economy like Japan, which entered its THIRD Lost Decade last year when it also embarked on its EIGHT round of quantitative easing.

If interest rates were what they were during the Clinton administration, our debt service would consume one-third or more of revenues.

And, consider this:

In 2010, John Kitchen of the US Treasury and Menzie Chinn of the University of Wisconsin published a study entitled: ‘Financing U.S. Debt: Is There Enough Money in the World—and At What Cost?’

By 2020, Kitchen and Chinn project the amount of US Treasury debt that foreign governments will have to buy in order to finance our spending and debt will have to rise to about 19 percent of the rest of the world’s GDP, which they say is . . . do-able . . . BUT TOTALLY NEVER GONNA HAPPEN UNREALISTIC.

Whether the rest of the world will want to do it is another matter. A future that presumes the rest of the planet will sink a fifth of its GDP into U.S. Treasuries is no future at all.

Progs always say that we are 5% of the world’s population, but use 25% of the planet’s resources, which, according to them, is a very bad, racist, imperialistic, oppressive, selfish, and mean thing to do.

Evidently, being 5% of the world’s population and expecting the equivalent of the Coolies to build our modern-day railroads, which are known as Obamacare, Social Security, Medicare, free college, subsidised housing, cradle-to-grave welfare, etc., by demanding that the rest of the world spend 19% OF THE GLOBAL GDP EVERY YEAR ON US TREASURIES beginning in 2020 while we sit on our couches eating Twinkies watching American Idol while our solar-panel-generated air conditioners are blasting away because ‘we are so trying to save the planet, man’ is perfectly acceptable.

Resist We Much on September 17, 2013 at 4:34 PM

Personally, I’m thinking Alaska. Easier to defend and the hordes don’t like the cold or long distances.

Cleombrotus on September 17, 2013 at 4:21 PM

Except that Putin can see you from his archipelago.

de rigueur on September 17, 2013 at 4:38 PM

Why waterfront? Wouldn’t farmland be wiser?

Personally, I’m thinking Alaska. Easier to defend and the hordes don’t like the cold or long distances.

Cleombrotus on September 17, 2013 at 4:21 PM

I am 60 years old, farming is not in my future. Waterfront sells easier. Lived in Alaska for four years, unless you are immune to sub zero cold 6 months of the year, biting black flies in August and frost bite in September, stay away from there.

Johnnyreb on September 17, 2013 at 4:41 PM

Can’t we just print more money

- average Obama voter

bsinc1962 on September 17, 2013 at 4:01 PM

You think you’re being funny. But a HuffPo commenter broad said as much a year or so ago.

If I remember correctly she said something to the effect of “The world needs our dollars. There’s no other currency that they can use and since we have all the dollars and can print more,…”

You get the idea. I’m not lyin’. I suppose I should have bookmarked, but an idiotic comment such as that would be long since excised.

Lanceman on September 17, 2013 at 4:41 PM

Every fiat currency in the history of civilization has failed…100%…

PatriotRider on September 17, 2013 at 3:33 PM

And everyone who has ever lived will die.

Yet, here we are…

Meremortal on September 17, 2013 at 4:42 PM

No shit?

DarkCurrent on September 17, 2013 at 4:44 PM

We do worry about it now. But we are powerless to make the government worry about it.

petunia on September 17, 2013 at 4:50 PM

Obviously, we have to spend our way out of this problem.

kenro85 on September 17, 2013 at 3:26 PM

Hey, they’re working on it.

It’s why they insist we must have “immigration reform” (i.e. amnesty for the 30-50 million illegal aliens already here, plus giving the newly-legalized “immigrants” the legal right to bring in a couple hundred million more family members from back home).

What fiscal problems do we have that can’t be solved by legalizing and importing tens of millions more low-income, uneducated, welfare and food stamp recipients?

AZCoyote on September 17, 2013 at 4:52 PM

Personally, I’m thinking Alaska. Easier to defend and the hordes don’t like the cold or long distances.

Cleombrotus on September 17, 2013 at 4:21 PM

Alaska has a cyclical homelessness reduction program. Its called WINTER.

BobMbx on September 17, 2013 at 5:01 PM

Hey, I have an idea… let’s make 11 million more people dependent on the government.

stenwin77 on September 17, 2013 at 5:01 PM

Can’t we just print more money

- average Obama voter

bsinc1962 on September 17, 2013 at 4:01 PM

Well, there is Obama’s stash.

BobMbx on September 17, 2013 at 5:04 PM

my hunch is there is a lot of this kind of thing occurring

DanMan on September 17, 2013 at 4:11 PM

You would be correct.

txhsmom on September 17, 2013 at 5:38 PM

Really? No Sh t Sherlock.

jistincase on September 17, 2013 at 6:19 PM

The CBO is racist!!!!

PattyJ on September 17, 2013 at 7:44 PM

Resist We Much on September 17, 2013 at 3:57 PM

Since spending is not the result of the President only, I prefer to give credit/blame to the political party which controlled a majority (2+ out of 3) of the three budget-making entities:
1) House
2) Senate
3) Presidency

From January 3, 1995 to January 2, 2007, Republicans held majority control and were mostly responsible for passing the FY 1996 – 2007 budgets. In those 12 Fiscal Years, Republican majorities increased the total national debt by $4 Trillion (raising the total from $5T to $9T)

From January 3, 2007 to present, Democrats have held majority control and were mostly responsible for passing the spending of FY 2008 – 2013. In just 6 Fiscal Years, Democrat majorities have increased the total national debt by approximately $8.2 Trillion (raising the total from $9T to approximately $17.2T)

Democrats have been deficit spending at a rate that is more than 4 times the rate of deficit spending under the previous Republican majorities.

The last budget passed by a Republican House, Republican Senate, and Republican President (passed in 2006 for FY 2007) resulted in a deficit of:

Less than $161 Billion

Now, Democrats think it is some big accomplishment to have an annual deficit under $1,000 Billion ($1T).

ITguy on September 17, 2013 at 9:10 PM

And remember, Democrats more than quadrupled deficit spending rates after PROMISING “Fiscal Discipline” and “No more deficit spending”.

ITguy on September 17, 2013 at 9:16 PM

Democrats made deficit spending and the national debt a campaign issue in 2006 and won both houses of Congress with promises of fiscal discipline and “no more deficit spending”.

When Democrats took majority control on January 3, 2007, did they keep those promises?

No, they did the exact opposite… they roughly tripled the deficit in their first fiscal year budget (FY 2008), roughly tripled the deficit AGAIN in their second fiscal year budget (FY 2009), and haven’t passed a real budget since 2009. The Democrat majorities, who promised “no more deficit spending”, have been running deficits over $1 Trillion (over $1,000 Billion) for the last six fiscal years (FY 2009, 2010, 2011, 2012, 2013, and now into 2014).

Let’s take a look one more time at the promises and statements made by Democrats in 2006 – 2008:

2006:

Over the past decade, the Republican controlled Congress took our nation in the wrong direction. Too many Americans are paying a heavy price for those wrong choices: record costs for energy, health care and education; jobs shipped overseas; and budgets that heap record debt on our children. For millions, the middle-class dream has been replaced by a middle-class squeeze…

Democrats are proposing a New Direction for America…

With integrity, civility and fiscal discipline, our New Direction for America will use commonsense principles to address the aspirations and fulfill the hopes and dreams of all Americans. That is our promise to the American people….

Our federal budget should be a statement of our national values. One of those values is responsibility. Democrats are committed to ending years of irresponsible budget policies that have produced historic deficits. Instead of piling trillions of dollars of debt onto our children and grandchildren, we will restore “Pay As You Go” budget discipline.

Budget discipline has been abandoned by the Bush Administration and its Republican congressional majorities. Congress under Republican control has turned a projected $5.6 trillion 10-year surplus at the end of the Clinton years into a nearly $3 trillion deficit– including the four worst deficits in the history of America. The nation’s debt ceiling has been raised four times in just five years to more than $8.9 trillion. Nearly half of our nation’s record debt is owned by foreign countries including China and Japan. Without a return to fiscal discipline, the foreign countries that make our computers, our clothing and our toys will soon be making our foreign policy. Deficit spending is not just a fiscal problem – it’s a national security issue as well.

Our New Direction is committed to “Pay As You Go” budgeting – no more deficit spending.

2007:

After years of historic deficits, this 110th Congress will commit itself to a higher standard: pay-as-you-go, no new deficit spending. Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt.

- New Speaker Nancy Pelosi, 01/04/2007

2008:

“The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents – #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back — $30,000 for every man, woman and child. That’s irresponsible. It’s unpatriotic.

- Barack Obama July 3, 2008

Republican majorities added $4 Trillion to the total national debt over the course of 12 Fiscal Years (FY 1996-2007)

Democrat majorities have added over $8 Trillion to the total national debt over the course of 6 Fiscal Years (FY 2008-2013).

Democrats, after promising fiscal discipline and no more deficit spending, have done the EXACT OPPOSITE, and have been deficit spending at OVER FOUR TIMES THE RATE of their Republican predecessors.

ITguy on September 17, 2013 at 9:17 PM

Democrats, after promising fiscal discipline and no more deficit spending, have done the EXACT OPPOSITE, and have been deficit spending at OVER FOUR TIMES THE RATE of their Republican predecessors.

ITguy on September 17, 2013 at 9:17 PM

And you believed them?

Progressives lie because they know if they ever told the truth, even once, it would be all over. Like the Duke and the King and their “Royal Nonesuch” con in Huckleberry Finn.

And if you think the progressives’ fiat money and “creative” accounting are bad now, just wait until they create a “NewDollar” by “cutting off three zeros and remonetiz(ing)”, as Heinlein noted in The Number Of The Beast.

like Zeb, you’ll want a rifle at that point. One that isn’t “licensed”. Seven point six-two millimeter, long cartridge, for a preference.

clear ether

eon

eon on September 17, 2013 at 10:10 PM

Why waterfront? Wouldn’t farmland be wiser?
Personally, I’m thinking Alaska. Easier to defend and the hordes don’t like the cold or long distances.
Cleombrotus on September 17, 2013 at 4:21 PM
I am 60 years old, farming is not in my future. Waterfront sells easier. Lived in Alaska for four years, unless you are immune to sub zero cold 6 months of the year, biting black flies in August and frost bite in September, stay away from there.
Johnnyreb on September 17, 2013 at 4:41 PM

If it’s a choice between being a free man or a serf? I’ll take the black flies and frostbite every time.

Cleombrotus on September 18, 2013 at 4:24 AM

We have to burn the village to save it.

Bevan on September 18, 2013 at 8:15 AM

And you believed them?

eon on September 17, 2013 at 10:10 PM

No, I didn’t. But enough people did to turn the balance of power from Republican to Democrat in the 2006 and 2008 elections, and to re-elect Obama in 2012 (if one assumes that was an honest election).

My point is that we need to show those who did believe those Democrat promises that the Democrats have done the exact opposite of what they claimed was “our promise to the American people”.

In 2006, Democrats used statements like this to hit voters’ hot button:

Without a return to fiscal discipline, the foreign countries that make our computers, our clothing and our toys will soon be making our foreign policy. Deficit spending is not just a fiscal problem – it’s a national security issue as well.

Our New Direction is committed to “Pay As You Go” budgeting – no more deficit spending.

Voters wanted fiscal discipline in 2006.
Voters wanted fiscal discipline in 2008.
Voters still want fiscal discipline now.

Democrats have been continuously lying to try to paint themselves as the more fiscally responsible party.

Even now, the Democrats are trying to make Republicans appear fiscally irresponsible, by claiming that the Republicans want to default on our debt payments. That is another lie.

Republicans with a media voice must remind voters of the truth… that Democrats promised “no more deficit spending” and then more than QUADRUPLED the amount of deficit spending.

Republicans must stand for fiscal discipline. It is what voters want, and what we MUST have to prevent financial crisis.

ITguy on September 18, 2013 at 8:57 AM

GDP Averages By Quarter From Carter To Obama

1977:1……….…4.7
1977:2……….…8.2
1977:3…….……7.3
1977:4………..-0.09
1978:1……….…1.4
1978:2………….1.7
1978:3…………3.9
1978:4…………5.4
1979:1…………0.7
1979:2…………0.4
1979:3…………2.9
1979:4…………1.1
1980:1…………1.7
1980:2…….….-7.9
1980:3………..-0.2
1980:4…………7.1

Jimmy Carter average GDP: 2.39%.

1981:1…….……8.6
1981:2……..…-3.2 Volcker raises Federal Funds Rate to 20%.
1981:3…..……..4.9
1981:4………..-4.9 Reagan cuts income taxes and lowers capital gains tax (CGR) to 20%.
1982:1……..…-6.4
1982:2…………2.2 Agrees to a deal to rollback corporate tax cuts and some income tax cuts.
1982:3………..-1.5
1982:4…………0.3
1983:1…………5.1
1983:2…………9.3
1983:3…………8.1
1983:4…………8.5
1984:1…………7.9
1984:2…………7.1
1984:3…………3.9
1984:4…………3.3
1985:1…………3.8
1985:2…………3.4
1985:3…………6.4
1985:4…………3.1
1986:1…………3.9
1986:2…….…..1.6
1986:3…………3.9 Tax Reform Act of 1986. Among other things, the top marginal rate is cut to 28%.
1986:4…………1.9
1987:1…………2.2
1987:2…………4.3
1987:3…………3.5
1987:4…………7.0
1988:1…………2.1
1988:2…………5.2
1988:3…………2.1
1988:4…………5.5

Ronald Reagan average GDP: 3.54%.

1989:1…………3.8
1989:2…………3.0
1989:3…………3.2
1989:4…………0.9
1990:1…………4.2
1990:2…………1.6 Bush flip-flops on his pledge, increases taxes, and triggers a recession.
1990:3….…..-0.01
1990:4………..-3.5
1991:1…….….-1.9
1991:2………….2.7
1991:3………….1.7
1991:4…………1.6
1992:1 …………4.5
1992:2 …………4.3
1992:3…………4.2
1992:4…………4.3

George HW Bush average GDP: 2.2%.

1993:1…………0.7
1993:2…………2.6
1993:3…………2.1 Clinton increases taxes.
1993:4…………5.4
1994:1…………3.9
1994:2…………5.6
1994:3…………2.6
1994:4…………4.5
1995:1…………0.9
1995:2…………0.9
1995:3…………3.4
1995:4…………2.8
1996:1…………2.8
1996:2…………4.7
1996:3…………2.1
1996:4…………3.8
1997:1…………5.9 Clinton cuts CGR from 28% to 20%.
1997:2…………3.3
1997:3…………3.1
1997:4…………3.1
1998:1…………3.8
1998:2…………1.8
1998:3…………3.7
1998:4…………6.0
1999:1…………3.6
1999:2…………1.6
1999:3…………5.1
1999:4…………7.3
2000:1…………5.5
2000:2…………5.6
2000:3…………0.3
2000:4…………1.0

Bill Clinton average GDP: 3.42%.

2001:1………….1.2
2001:2…………2.6 Bush tax cuts are passed, but are staggered over many years. This was corrected in 2003.
2001:3…..……-1.3
2001:4…………1.7
2002:1…………6.1
2002:2…………2.1
2002:3…………4.0
2002:4…………1.4
2003:1…………1.4 CGR was reduced and tax revenues from CGs doubled to $103 billion. 2001 tax cuts were also accelerated.
2003:2…………3.3
2003:3…………8.2
2003:4…………4.1
2004:1…………3.9
2004:2…………3.3
2004:3…………4.0
2004:4…………3.8
2005:1…………5.2
2005:2…………3.3
2005:3…………3.2
2005:4…………2.1
2006:1…………5.6
2006:2…………2.6
2006:3…………2.0
2006:4…………2.5
2007:1…………0.7
2007:2…………3.8
2007:3…………4.9
2007:4…………1.8
2008:1…………1.0
2008:2…………2.8
2008:3………. -0.5
2008:4…..……-6.3

George W Bush average GDP: 2.6%.

2009:1…………-5.5
2009:2…………-0.7
2009:3………….2.2
2009:4………….5.6
2010:1………..…2.7
2010:2………..…1.7
2010:3………..…2.6
2010:4……….….3.1
2011:1……..……1.9
2011:2………..…1.3
2011:3………..…1.8
2011:4…………..3.0
2012:1………..…1.9
2012:2………..…1.3
2012:3………..…2.0
2012:4………..…0.1

Barack H Obama average GDP: 1.56%.

Resist We Much on September 19, 2013 at 9:22 PM