Obama Deficit Will Cause National Debt to Soar
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.