Monday, March 02, 2009
How Bad is the Budget?
I think that this graph from USA Today shows just how insane the Obama budget is. For the last 30 years government spending increased in a fairly straight line. There was a jump when Bush took office (slightly obscured) but it was still a slow climb. Then we get to the Obama budget and it takes off like a rocket. In fact, maybe we should start calling this the Hockey Stick budget after the (discredited) temperature reconstruction.
The other thing to pay attention to is the area showing the deficit or surplus. The Bush deficit (still partially obscured) is in the ball park of the others. In fact, if he hadn't boosted spending so much then we would have been in a surplus for a year or two. Then we get to Obama. At the same time that government spending is rising, revenue is falling. Not only is he spending at unprecedented rates, he is also borrowing at a rate unheard of in the last 30 years.
It gets worse when you realize that he used fairly rosy projections for the economic recovery and for the tiny bit of cost-cutting that he plans and he included hundreds of billions in new taxes and fees. Assume that the real figures will be much worse, if he manages to pass his budget as is.
Supposedly Reagan proved that deficits don't matter but, as the chart shows, there is an order of magnitude between Reagan's deficits and Obama's.
I think that everyone in America should oppose this budget. It will bankrupt America. In the very near future, payments on all of this debt will crowd out Obama's new entitlements. There just will not be enough money to pay for all of this.