Obama Deficit Will Cause National Debt to Soar

March 28, 2010

The Obama administration has produced a record budget deficit of over $1.3 trillion for fiscal year 2010.  The CBO has re-estimated its 10 year projections to predict that Obama’s budget deficits will push the country almost $10 trillion further in debt by 2020.

Putting the federal deficit in terms that Americans can understand, when Obama entered office, the public debt amounted to roughly $56,000 per household.    Today it is $72,000 per household and is headed to more than $170,000 per household in 2020.

According to the CBO, the deficit will equal almost 90% of GDP in 2010

It is important to note that the deficit adds to the national debt and creates a death spiral where additional debt adds to the spending that must happen each year to cover the interest payments on that debt.  This spiral puts additional pressure towards increasing deficits.

It is also important to note that deficits are mostly in control of the President and Congress.  For 2010, the Obama administration and Congress chose to spend over $1.4 trillion more than the government makes from taxes and other revenues.  To reduce or eliminate the deficit, the government needs to plan to spend less than what it believes it will take in.  Currently, the government is planning to spend far more each year than what it takes in.

Americans have just started to come out of a debt crisis caused by Americans and businesses taking on more debt than they can handle.  Now the government is making the same mistakes by tripling the budget deficit and pushing the country further and further into debt.

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3 Responses to Obama Deficit Will Cause National Debt to Soar

  1. Sue Cartwright on April 7, 2010 at 3:16 pm

    This is misleading as so many articles that blame Obama, the republicans or the democrats. First off in January 20009 we were in a recession, we still have issues from that. If we were at 20% unemployment and the stock exchange was still crashing, do you think anyone would care about the deficit. The ship was sinking, the recession hit several industries harder then others. So we did some things so that every one did not go down at once. I think it is amazing that we are not in worse shape that we are. Thanks for blaming Obama, it helps blaming someone instead of looking for solutions. I would like to see some solutions in your articles, that would take some work and thought though. What ideas do you have to keep healthcare cost from going up 17 to 70% per year. What do you think we should do about Detroit and California?

  2. Steve Mustanski on April 7, 2010 at 7:43 pm

    People should care about the deficit. The further we go into debt each year, the more interest we have to pay each year.

    The answer to our problems isn’t to spend more and more money that we don’t have.

    Obama talks about the horrible Bush deficits (that were roughly 450 billion). However the Obama deficits have been 1.2 and 1.4 trillion.

    The solution would be to cut government spending to match revenues. Bush should have done that and Obama should do it now. So this year, cut 1.4 billion in spending. In fact, cut 2 billion in spending and then pay 600 billion down on our over 12 trillion in debt.

    Also, don’t let our government lie to us by saying that some programs will reduce the deficit when it is clear that those programs will send us further into debt.

    If you think we must raise taxes, then raise taxes on ALL Americans, not just some people. If everyone thinks that we need to spend money on something, then EVERYONE should be willing to pay for it. That is the way that the constitution was set up. The marxists of the early 20th century were able to convice the public that we need to tax “those” people so that everything is more fair. Since then the government has enacted more and more taxes, but still fail to reduce the debt. Did you know that the first income tax was in 1913 (not counting the income taxes that were illegally enacted during the civil war). The first tax was 1% on people making over $100k in 1913. Now the taxes start at 15% and go up from there. That also doesn’t count medicare taxes and Social Security taxes.

    So Detroit has run itself into the ground by poor business decisions and crushing benefits that it can’t afford. Now, I somehow am responsible to pay for that?

    California has mandated that it spend way more than it takes in. So everybody should help pay for that?

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