Monday, February 14, 2011

Don't Confuse "Balanced Budget" With Zero Debt!

So, president Obama offered a budget that he says saves a TOTAL of $1.1 Trillion in deficit spending over the next TEN years. (That's NOT $1.1 Trillion per year; it's $1.1 Trillion total or an average of about $100 Billion per year.) If you think that's good news, please consider some facts about what his budget ACTUALLY does:
  1. His 2012 budget proposal does NOT reduce spending. In fact, it INCREASES the budget deficit by $8 Billion next year. In other words, he's proposing spending $8 Billion MORE than last year's record amount.
  2. His 2012 $3.73 Trillion budget is NOT a spending decrease. In fact, it is a spending record!
  3. In fact, HE says in his newly announded 2012 budget proposal that, based on his proposed spending plan, the national debt will INCREASE from $14 Trillion now to $16.7 Trillion in the next 18 months. Wow, that's certainly an aggressive attack on the national debt, eh?
  4. The budget deficit this year will continue increasing to a record $1.65 Trillion record amount by year's end and THEN begin decreasing. SLOWWWWWWWLY. :-(
  5. Obama's new budget projects the budget deficit (not the debt!) to decrease to $1.1 Trillion by the end of 2012.
  6. #5 above does NOT mean the national debt begins to decrease at ANY time during the next ten years. A budget deficit of $1.1 Trillion at the end of 2012 means the NATIONAL DEBT INCREASES by that amount.
  7. Common Sense: Just because the budget deficit begins to decrease DOES NOT mean the national debt starts decreasing. The national debt doesn't begin decreasing until there is a budget surplus! ANY year in which there is ANY(!) budget deficit, the national debt increases by the amount of that deficit. ==>> The national debt won't START decreasing until the first year in which we have a BUDGET SURPLUS <<-- Ie, when we have more money coming into government coffers than going out!!! So that there is money left over(!) to use paying down the debt.
  8. In fact, Obama says in HIS new budget statement that BUDGET DEFICITS WILL CONTINUE FOR AT LEAST THE NEXT TEN YEARS(!) and will total $7.21 Trillion between now and then! The math is SIMPLE: In ten years the national debt will be $14 Trillion PLUS the $7.21 Trillion increase ... ie, Obama's 'wonderful' budget proposal means a $21.21 Trillion national debt by 2021!!! Does that sound to you like those yahoos in DC are getting a grip on THEIR outa control spending and debt? It doesn't sound like it to me!
  9. Regarding #7 above, do you have ANY idea how difficult it will be to achieve a budget surplus based on the history of congress' ability to produce surpluses? How long do you think it will take these yahoos on capitol hill to achieve an actual budget surplus? Until then the national debt will CONTINUE INCREASING!
If you think Obama is being aggressive with the national debt, please answer whether you think that continuing to increase the national debt year after year for at least ten MORE years (to $21.21 Trillion) according to Obama(!) represents fiscal responsibility.

To be fair, most of the debt increase over the next ten years is due to increases in entitlements like Social Security, Medicare and ObamaCare. The amount of new spending beyond those programs is not a big deal. So, to his credit and for a change, Obama is NOT proposing huge NEW spending in his budget planning over the next ten years. That's a good thing. However, he is nevertheless the guy in charge who is RESPONSIBLE for producing a plan to get entitlement spending under control. His 2012 budget SHOULD have included proposals how to solve/address the problem of entitlement spending that's on a course to bankrupt the country. HE DID NOT(!) propose ANYTHING to start addressing this problem. He should be LEADING THE COUNTRY in fixing this problem. He may not like having to do that but he is our country's CEO and leading us on fixing this IS his responsibility. He has no courage, much less any concept of the kind of leadership that Americans and the duties of his office require of him right now.

Question: Who exactly is going to act like a grownup in DC and start leading the country in fixing this? It is NOT We The People who are responsible to fix it. In fact, WE CANNOT! It IS the responsibility of the president AND congress. President Obama's new budget IRRESPONSIBLY dodges the issue!

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