Smelling Salts Required: Deficit to hit $1.75 trillion under Obama

Rick Moran
At what point does the cure that Obama is trying to implement kill us?

President Obama’s new budget blueprint estimates a stunning deficit of $1.75 trillion for the current fiscal year, which began five months ago, then lays out a wrenching change of course as he seeks to fund his own priorities while stanching the flow of red ink.

By redirecting enormous streams of deficit spending toward programs like health care, education and energy, and paying for some of it through taxes on the rich, pollution surcharges, and cuts in such inviolable programs as farm subsidies, the $3.55 trillion spending plan Mr. Obanma is undertaking signals a radical change of course that Congress has yet to endorse.

The deficit he inherited, a shortfall of more than $1 trillion as the current fiscal year began, has continued to swell in recent months with additional bank bailouts, the first wave of spending from the newly enacted stimulus plan and the continuing costs of the wars in Iraq and Afghanistan.

The administration, as it had announced, will try to cut that amount sharply by 2013, when Mr. Obama’s first term ends, to $533 billion, even as it escalates spending on crucial priorities.

They aren't going to cut much - except shredding the defense budget and nibbling at the margins of discretionary spending. The difference will be made up in tax increases thus repeating Herbert Hoover's mistake in 1931 of raising taxes in the midst of a deep recession. At that time, Hoover's action led to a depression that we were 10 years getting out from under.

Friends, we are in deep, deep, trouble and only by applying conservative principles to government can this country survive what the Democrats are trying to do. That does not appear likely - right now. But in six months, after all the bailouts, the stimuluses, and the efforts to stabilize the banks have failed (despite the White House trying to spin success), there may very well be a tsunami that will hit Washington and sweep away those members in 2010 who are responsible for this incredible turn of events.

At what point does the cure that Obama is trying to implement kill us?

President Obama’s new budget blueprint estimates a stunning deficit of $1.75 trillion for the current fiscal year, which began five months ago, then lays out a wrenching change of course as he seeks to fund his own priorities while stanching the flow of red ink.

By redirecting enormous streams of deficit spending toward programs like health care, education and energy, and paying for some of it through taxes on the rich, pollution surcharges, and cuts in such inviolable programs as farm subsidies, the $3.55 trillion spending plan Mr. Obanma is undertaking signals a radical change of course that Congress has yet to endorse.

The deficit he inherited, a shortfall of more than $1 trillion as the current fiscal year began, has continued to swell in recent months with additional bank bailouts, the first wave of spending from the newly enacted stimulus plan and the continuing costs of the wars in Iraq and Afghanistan.

The administration, as it had announced, will try to cut that amount sharply by 2013, when Mr. Obama’s first term ends, to $533 billion, even as it escalates spending on crucial priorities.

They aren't going to cut much - except shredding the defense budget and nibbling at the margins of discretionary spending. The difference will be made up in tax increases thus repeating Herbert Hoover's mistake in 1931 of raising taxes in the midst of a deep recession. At that time, Hoover's action led to a depression that we were 10 years getting out from under.

Friends, we are in deep, deep, trouble and only by applying conservative principles to government can this country survive what the Democrats are trying to do. That does not appear likely - right now. But in six months, after all the bailouts, the stimuluses, and the efforts to stabilize the banks have failed (despite the White House trying to spin success), there may very well be a tsunami that will hit Washington and sweep away those members in 2010 who are responsible for this incredible turn of events.