The Heritage Foundation has done a fantastic job of breaking down Obama's budget deficits [2] and poking holes in most of his claims.
First up, have a gander at the handy-dandy chart they've put together that shows our deficits up until 2008...and then the Obama deficits going forward, (both his own "claimed" numbers...and the bi-partisan Congressional Budget Office's numbers).
It is, to say the least, breathtaking...
They point out that the Bamster claims he'll "cut the deficit in half" in ten years...but he leaves out the useful fact that he means "half" of what he runs it up to this year. And, of course, he doesn't like to talk about how much these deficits will add to the overall national debt...as in, it will double it.
You can catch their complete breakdown here [2].
So how does all this get financed? Well debt, of course. The only problem there is that money is starting to lose it's taste for buying debt [3]...as in, government bonds aren't selling nearly as fast...and we're having to raise the interest rates to sell what does get sold.
The Entitlement Monster that Ate the Budget
Of course we've heard all about those new programs Obama wants to add...and we're all familiar with the money spent (and to be spent) on "stimulus" and bailouts. But when you take into account what happens in the future once we total up the costs of expansions to Medicare and Medicaid, it truly gets staggering. From Heritage [4]:
Going forward, Medicare costs are projected to more than triple from today's 2.7 percent of GDP to 9.4 percent by 2050. In current terms, a cost increase of 6.7 percent of GDP would equal $916 billion, or $7,930 per household annually. [5] According to CBO, if the entitlement growth was funded by issuing debt, the debt-to-GDP ratio would rise from about 37 percent today to more than 290 percent in 2050. [6] If entitlement growth was funded by raising taxes, CBO analysis indicates that income tax rates would nearly double from current levels. [6]
Incredible. At some point, all you can do is laugh and shake your head.
Anyone who doesn't think we're on a fast track to a tax-revolt and a potential political meltdown is kidding themselves.
Sooner or later, many of the law-abiding folks who pay this freight will simply throw up their hands and say "no". And what percent of taxpayers engaging in some good old-fashioned civil disobedience by not paying those taxes will it take to bring the entire system to a halt? And what do you do with them? There aren't enough jails...and who'll be paying the jailors anyway?
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Had enough of this nonsense? Click here and tell Congress to STOP the Spending [7]!
