Tuesday, February 15, 2011

The 2011-2 Budgets Are Trainwrecks

Every educated citizen that I mentioned in the last post should look at the President's proposed budget and shudder in fear. $1.6 trillion of debt is just unsustainable. It has become systematic; the deficit over the last three years have all been over the trillion dollar mark.

The deficit this year equals nearly 11% of our entire GDP. Once this year is over, our entire GDP for the year would not be enough to pay off the debt we have amassed.

Supposedly, the deficit for the following year will "only" be $1.1 trillion, or roughly 7% of the GDP. But to be honest, the government shouldn't even be making predictions about the economy that far into the future. The Congressional Budget Office's numbers from January 2009 predicted a reduction in debt for the following year (2010). The predicted debt was $700 billion; the actual deficit for that fiscal year was nearly twice as much, at $1.3 trillion. Hell, the predicted deficit for the current year of that estimate (2009) was off by $200 billion. How much was this year supposed to put us in the hole? $500 billion, less than a third of the projected deficit for this year now.

The budget numbers are atrocious. And horribly enough, they are probably wildly optimistic. If the numbers on Social Security, Medicare, and ObamaCare are equally off, this "recession" might be remembered as the last of the good ol' days.

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