The job of debt reduction isn’t even close to being done
But the CBO report this weekend assumes that all of the deficit reduction Obama described is implemented along with about $1.2 trillion in savings from automatic spending cuts. In other words, the report assumes deficit reduction along the lines that Obama says is the goal.
Yet public debt (U.S. debt held by investors), is projected to rise from $12.2 trillion in 2013 to $19.9 trillion by 2023. Gross debt (which includes money the federal government owes other government funds, such the Social Security system) is projected to grow from $17 trillion in 2013 to $26 trillion by 2023. On a more comparable basis, the public debt is projected to be 77 percent of GDP by 2023, or more than double the 36.3 percent that it was in 2007, before the onset of the economic crisis. Of course, this is just over the next decade. The budget picture gets even worse from there.
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So long as deficits are being incurred the job of debt reduction hasn’t even begun. Obama is the world’s biggest bullshitter.
Basilsbest on February 12, 2013 at 5:30 PM
Charts to keep in mind during the hocus-pocus SOTU comedy show:
http://www.nationalreview.com/corner/340484/three-charts-keep-mind-during-sotu-address-veronique-de-rugy
onlineanalyst on February 12, 2013 at 5:34 PM
The job of debt reduction isn’t even close to being
donestartedXasprtr on February 12, 2013 at 7:06 PM
The first chart paints Fiscal Years red for Republican Presidents and blue for Democrat Presidents. FY 2009 is painted red, but Bush didn’t sign the 2009 budget… Obama did. the FY 2009 budget was passed by the Pelosi House, the Reid Senate, and signed by Obama. The Dems are responsible for the FY 2009 $1.4 Trillion deficit, but like to pretend that it was “Bush’s fault”.
An even more accurate picture would paint red those Fiscal Years when Republicans held 2+ of the House, Senate and Presidency, (FY 1995 – 2007) and paint blue those Fiscal Years when Democrats held 2+ of the House, Senate and Presidency (FY 2008 – present).
See that small increase from FY 2006 to FY 2007? That was the last Republican majority budget, which had a deficit of less than $161 Billion. Then the Dems took over, tripled the deficit in their first Fiscal Year, then tripled it again in their second Fiscal Year. Then they blame that all on Bush and act like any deficit under $1.4 Trillion is some big accomplishment.
ITguy on February 12, 2013 at 7:23 PM