Obama Budget: Unsustainable For Our Country
“U.S. fiscal policy is unsustainable, and unsustainable to an extent that it can’t be solved through minor changes,” Congressional Budget Office (CBO) Director Douglas Elmendorf told reporters at a Christian Science Monitor breakfast.
“Unless we as a nation demonstrate a strong commitment to fiscal responsibility, in the longer run we will have neither financial stability nor healthy economic growth,” Bernanke said in a speech, regarding the Budget.
Here are some quick notes on the Obama budget.
- 2008 Deficit was $454.8 Billion. It was the largest deficit in Bush Admin.
- 2009 Deficit is $1.41 Trillion. That is a 210% increase from 2008.
- CBO predicts president’s budget to lead to $1.5 Trillion deficit in 2010 and $1.36 Trillion in 2011.
- CBO Baseline Predicts deficit for 2010 to be $1.35 Trillion and $995 Billion in 2011.
- Under President’s budget, we will not see a single deficit under $700 Billion – ever. Under Baseline, we will never see a deficit under $400 Billion.
- Under President’s Budget, the deficit in 2020 will be $1.2 Trillion. More than $9 Trillion added to national debt, over next decade.
- Baseline CBO prediction says deficit in 2020 will be $683 Billion and more than $5.9 Trillion added to national debt in next decade.
- In 2008, the deficit was 3.2% of the GDP. The deficit is now 9.9% of the GDP.
- President’s budget will lead to deficit being more than 10% of GDP in 2010 and 8% of the GDP in 2011.
- Baseline CBO prediction says deficit will be 9.3% of GDP in 2010 and 6.6% of GDP in 2011
SOURCES:
CBO Historical Tables http://www.cbo.gov/ftpdocs/100xx/doc10014/March2009_HistoricalTables.pdf
CBO President’s Budget and Tables/Baseline Predictions http://www.cbo.gov/ftpdocs/112xx/doc11231/03-05-apb.pdf
CBO Director http://thehill.com/blogs/on-the-money/budget/91161-congressional-budget-office-fiscal-policy-is-unsustainable
