Obama’s new budget: Still more red ink
President Obama released his fiscal year 2013 budget proposal yesterday. A lot can, and will, be written about it — including writings by me on this blog. For now, just the bottom line:
Accounting for the roughly $200 billion in net deficits attributable to the 2009 “stimulus,” Obama has taken an inherited deficit of $1.21 trillion and borrowed an increasing amount of money in each of the three fiscal years since then:
$1.29 trillion in FY 2010
$1.30 trillion in FY 2011
$1.33 trillion in FY 2012
We are expected to believe that this number would shrink to “just” $900 billion in FY 2013 if Obama’s budget were implemented. Here’s why I say “expected to believe”: All of the reduction comes from higher taxes, and this administration has been very wrong in its revenue estimates before — most recently by about $230 billion this year. This is in largest part because the economy has yet to improve in the way the administration thought it would. And all of this is without even delving into the likelihood that Obama will get the tax increases he wants.
But let’s assume the forecast will turn out to be correct this time. Obama still will have missed — by a wide margin — his pledge to halve the deficit by the end of his first term.
Again, attributing $200 billion in 2009 deficits to his “stimulus,” his rosy scenario would have the deficit down by just 26 percent (32 percent in inflation-adjusted terms; 37 percent as a share of gross domestic product). Each of those numbers is a long way from 50 percent.
If reality next year turns out to be more like the last three years, however, we will be talking about single-digit increases in absolute terms (inflation-adjusted or not) and a 2 to 3 percentage-point drop relative to GDP.
All of this, in spite of rising revenues (no matter how they are measured) every single year of his presidency.
It’s the spending. It will always be the spending with this president.
– By Kyle Wingfield
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220 comments Add your comment
Darwin
February 14th, 2012
12:26 pm
You always get religion when the Republicans lose power. Where were you back when Bush was spending? You will always be a hypocrite.
Jefferson
February 14th, 2012
12:28 pm
Don’t let your hate for YOUR President blind you, congress must compromise. The last 6 presidents didn’t make a difference, did they ?
Ivan
February 14th, 2012
12:29 pm
Republicans.
Ended the Civil War.
Abolished Slavery.
Killed Vampires doing it.
Politico
Do what??????
February 14th, 2012
12:33 pm
“The last 6 presidents didn’t make a difference, did they ?”
The last 6 didn’t run up 15 trillion in debt.
Do what??????
February 14th, 2012
12:34 pm
“You always get religion when the Republicans lose power.”
?
“Where were you back when Bush was spending?”
Which day?
Lil' Barry Bailout (Revised Downward)
February 14th, 2012
12:38 pm
And the republicans can’t find anybody in 300 million Americans (not including Kenyans!) who can unseat him.
What gives?
———–
Too many parasites angling to keep their benefits coming.
a.k.a. Obamaggots.
Do what??????
February 14th, 2012
12:49 pm
“Obamaggots.
They’re all hanging out over on Bookman’s blog, LBB. I doubt any of them actually work for a living. They sit, wait for Jay to throw them a bone and then make the same comments about Bush etc 24/7. It’s really sad.
Jm
February 14th, 2012
12:51 pm
Dumb liberals blather on and on
Ignoring the issue posed by jay
Liberals have no cred
JHM had a half decent answer
Though he hasn’t the faintest idea how disruptive 20% renewable power would be to the grid
You thought the early 00’s blackout was crazy?
U ain’t seen nothing
Keep wallowing in ignorance liberals
It suits you
wut?
February 14th, 2012
12:51 pm
Correct, Do What??????. And if you disagree, you get booted. Typical. Of course there are only about 4 of them…Cramshak, Keep up, etc…
Jm
February 14th, 2012
12:55 pm
You guys dont understand utilities
The loan will only not be paid back if the state government says so
Then the state government would be screwing big daddy uncle Sam
Or they would be screwing each other
That is the other purpose of the loan guarantees
Alignment of government interests rather than governments screwing people who invest capital (lenders and shareholders)
Boy you folks are dumb
Churchill was right…..
Jm
February 14th, 2012
12:56 pm
Southern company is a “regulated utility”
Perhaps you turkeys should go look up what that means
Do what??????
February 14th, 2012
12:56 pm
“And if you disagree, you get booted. Typical. Of course there are only about 4 of them
Jay has a problem with discernment. I’ve argued with him many times over many issues and he always gives the left wingers a free pass. I’ve been called many names and when I retaliated he gave me the ole boot. Most of the people on his blog are left wingers that obviously don’t have jobs. If they did, their employer would have fired them all by now.
Do what??????
February 14th, 2012
12:57 pm
Jm
Like Sir Charles Barkely said “black people have voted for Democrats for decades and they’re still poor”
Jm
February 14th, 2012
12:59 pm
Driveby
You can now carp amongst yourselves again in wonderful collective ignorance
Lil' Barry Bailout (Revised Downward)
February 14th, 2012
1:00 pm
When our President Bush left office, 142 million had jobs. Today, 141 million.
Your Idiot Klown Obozo is a failure (or a success, if you are a Marxist).
Jm
February 14th, 2012
1:01 pm
Oh he’ll wrong blog
Inside Out
February 14th, 2012
1:04 pm
“Like Sir Charles Barkely said “black people have voted for Democrats for decades and they’re still poor”
Glad there are no poor white republicans…..
old timer
February 14th, 2012
1:07 pm
The House will pass a better budget, the Senate has already said they will not vote on anything. There has not been a budget in over 1000 days….The President has written a camaign budget and speech, promising everyone everthing. The will just confiscate more of the wage earners money. The people who can will put their money in overseas accounts and sit on it. I wish someone in camaign mode whould p\bring up the Fair Tax…
Linda
February 14th, 2012
1:11 pm
Obama said, 2/23/09, “We cannot, and will not, sustain deficits like these without end. Contrary to the prevailing wisdom in Washington these past few years, we cannot simply spend as we please and defer the consequences to the next budget, the next administration, or the next generation.
We are paying the price for these deficits right now. In 2008 alone, we paid $250 billion in interest on our debt, 1 in every 10 taxpayer dollars. That is more than three times what we spent on education that year, more than seven times what we spent on VA health care.
So if we confront this crisis without also confronting the deficits that helped cause it, we risk sinking into another crisis down the road as our interest payments rise, our obligations come due, confidence in our economy erodes, and our children and our grandchildren are unable to pursue their dreams because they’re saddled with our debts.
And that’s why today I’m pledging to cut the deficit we inherited by half by the end of my first term in office. Now, this will not be easy. It will require us to make difficult decisions and face challenges we’ve long neglected. But I refuse to leave our children with a debt that they cannot repay, and that means taking responsibility right now, in this.”
http://www.youtube.com/watch?v=SaQUU2ZL6D8
Obama continues to say one thing & do the complete opposite.
Just Saying...
February 14th, 2012
1:16 pm
2000 – Bush’s first Budget: Red Ink! And the problem with surpluses was…?
2001 – Bush’s new Budget: More red Ink. Republicans whistle while they spend.
2002 – Bush’s new Budget: More red Ink. Republicans whistle while they spend.
2003 – Bush’s new Budget: More red Ink. Republicans whistle while they spend.
2004 – Bush’s new Budget: More red Ink. Republicans whistle while they spend.
2005 – Bush’s new Budget: More red Ink. Republicans whistle while they spend.
2005 – Bush’s new Budget: More red Ink. Republicans whistle while they spend.
2006 – Bush’s new Budget: More red Ink. Republicans whistle while they spend.
2007 – Bush’s new Budget: More red Ink. Republicans whistle while they spend.
2008 – Bush’s Depression: We better call it a Recession or else we’re cooked for 20 years.
2012 – Obama’s new Budget: Apocalypse! Sky’s falling! We got nothing, but Keyes’ is an idiot!
GOP’s 2012 Super Secret, Really Brilliant, we are SO Smart, this’ll work NO Doubt, the Masses are SO Dumb: —->Voter Amnesia
(just show us your photo ID so’s we know it’s you).
Should work; Got me fooled…
Get Real
February 14th, 2012
1:20 pm
The progressive posts on this blog defy description…truly unbelievable
Finn McCool
February 14th, 2012
1:21 pm
Glad there are no poor white republicans…..
Trailer parks are full of them. like weeds. The reason many Republicans are pro-life is becasue they need voters and this is their base.
Get Real
February 14th, 2012
1:26 pm
Finn needs a giant reality pill, are you just visiting this planet?
Gimme Gimme Gimme
February 14th, 2012
1:26 pm
Internet Bubble……Don’t worry….it’s the new paradigm.
Housing Bubble….Don’t worry…..it’s the new paradigm.
Debt Bubble………Don’t worry…..it’s the new paradigm.
JKL2
February 14th, 2012
1:27 pm
aquagirl- Democrats who depended on information provided by the Mission-Accomplished Executive branch.
You mean those poor uninformed congressmen who all sat thru the same intel briefings? Is this like obama sitting in Rev Wright’s church for 20 years without hearing anything the man actually said? Maybe you should put more effort into electing representatives with the ability to comprehend.
JKL2
February 14th, 2012
1:37 pm
just sayin’-
2009 – obama’s new Budget: More red ink. It’s Bush’s fault.
2010 – obama’s new Budget: More red ink. It’s Bush’s fault.
2011 – obama’s new Budget: More red ink. It’s Bush’s fault.
2012 – Obama’s new Budget: More red ink. The economy is doing “great” but we’ll keep spending more because that’s all we know how to do.
Should work; Got me fooled…
MiltonMan
February 14th, 2012
1:38 pm
President Obama has a warning for America’s men: don’t forget today is February 14th.
“Let me start with a quick public service announcement to all the gentlemen out there: today is Valentine’s Day. Do not forget,” Obama said during remarks Tuesday. “I speak from experience here. It is important that you remember this.”
“And go big. That’s my advice,” the president added.
Thank you so much Mr. President for the reminder. What would I do without a fine government rep like you who wants to take care of me from cradle to grave. “and go Big” – that is the best part; kind of like you go big on spending right?
Lil' Barry Bailout (Revised Downward)
February 14th, 2012
1:46 pm
Bottom line–your Idiot Klown Obozo is the first to have presided over or proposed trillion-dollar deficits.
Obozo: America-hating failure.
Finn McCool
February 14th, 2012
1:47 pm
are you just visiting this planet?
Yes, I come to you from Newt’s moon colony. We are in beta test.
Voice of Reason
February 14th, 2012
1:52 pm
Wow, just scrolled down to the comments to see how long it would take the thread to devolve into the “it’s Bush’s fault” arguement. Apparently the answer is: 1 post. Congrats guys, that’s real accountability. Don’t bother with any responses, I won’t be back.
Just Saying...
February 14th, 2012
1:53 pm
JKL2:
Got a Who’s Fooling Who contest coming up Nov 6.
Meet you here Nov 7.
Hint:
Associated Press WASHINGTON February 14, 2012 (AP)
In an abrupt about-face, House GOP leaders announced Monday that they are willing to extend the two percentage point cut in the payroll tax through the end of the year and add the approximately $100 billion cost to the nation’s $15 trillion-plus debt…Without action by Congress by the end of the month, payroll taxes will rise for 160 million Americans.
Place your bet: Republican Principles, or Republican Politics?
Finn McCool
February 14th, 2012
1:55 pm
first to have presided over or proposed trillion-dollar deficits.
…and wont be the last.
I’m sure there were people reading the newspapers back in the old days who were moaning and whining about the first Million dollar deficits.
Linda
February 14th, 2012
1:58 pm
Just@1:16, Noticed you skipped budgets from ‘08-’11.
One way to prevent a budget deficit is to NOT PASS A BUDGET!
During Bush’s 8 yrs., $4.9 T was added to the natl. debt. During Obama’s first 3 yrs., $4.626 T has been added to the natl. debt. Does the AMOUNT & the SPEED matter?
Tiberius - Your lightning rod of hate!
February 14th, 2012
2:11 pm
“I’m sure there were people reading the newspapers back in the old days who were moaning and whining about the first Million dollar deficits.”
Way to dismiss the danger to the world economy so cavalierly, Finn.
Earth to Finn McCool: No debt has ever approached the size and scope of this debt and it’s relationship to our GDP. Ever. When you have a one-term President being responsible for approximately 40% of the total debt for this nation, with no attempt to corral spending, you have a long term economic disaster in the making.
And you libs just shrug it off.
Linda
February 14th, 2012
2:11 pm
Obama’s budget proposes that he’s able to raise taxes “on the millionaires & billionaires” (who make $200,000 & up), dead people, capital gains, oil & gas companies, etc., that is, making his dream come true, the dream he’s described for months. It assumes the economy will grow & revenues will increase. It reflects the $2.1 T in cuts made last summer. It adds new fees.
Liberals have been harping for months that all this would solve the deficit problem. So what happened? Obama decides to spend every single solitary new dollar of revenue, come up with new ways to spend even more dollars we do not have & still have a trillion dollar deficit. Democrats will never have enough money to spend.
Goodbye, America. Hello, Greece.
Just Saying...
February 14th, 2012
2:14 pm
Linda @ 2:11:
You’re Leaving?
GT
February 14th, 2012
2:15 pm
“Read my lips, no new taxes”
“Your president is not a crook”
“Iraq has weapons of mass destruction”
Gerald Ford was very honest and thrown out of office, never won an election. Honest Abe was shot, by a hot headed southerner.
It’s the lying, it will always be about the lying with these Republicans.
Lil' Barry Bailout (Revised Downward)
February 14th, 2012
2:18 pm
There is one party that has attempted to rein in federal spending–Republicans. The America-hating Democrats are the party of “no” to any restraint on the growth and intrusiveness of government.
Dusty
February 14th, 2012
2:24 pm
Well, today is RED INK DAY.
Make it into a valentine.
Make it into a ledger line.
Put the budget into decline.
Now smile or cry & whine.
Me? From this chair I rise & shine.
Gonna VOTE for a Repub valentine!!
‘Cause they are sweet, smart & kind!!!!
Gonna leave those Dems way far behind….
So stay happy! It’s RED INK DAY.
Just Saying...
February 14th, 2012
2:25 pm
Linda @ 1:58:
$4.626 T may be a measure of the hole we were in. I know, I know, don’t go all Pavlov; it was nobody’s fault. Just happened. Go figure.
But I do enjoy your apparent admiration of the discipline of a budget document. Because the reason for running two wars for 7 years and Never budgeting for either is…?
Dusty
February 14th, 2012
2:36 pm
Just saying, 2:25
Most Americans in the past decade voted & promoted war on dictators & terrorism. It seems some Democrats got mixed up and made war on Bush.
Don’t you think it is time for you to realize that Bush is not the enemy? That effort for truth would be greatly appreciated .
Now, I’ve gone to vote.
DawgDad
February 14th, 2012
2:40 pm
“It’s the lying, it will always be about the lying with these Republicans”
That’s part of the reason why there’s a Tea Party. We’re looking to get THESE Republicans (RINOs) out of office. But we’re NOT looking for socialist replacements.
GT
February 14th, 2012
2:44 pm
Dusty, Dusty, but you are all wet you must be a mud puddle.
Rafe Hollister
February 14th, 2012
2:54 pm
Just Saying, If I agree with you that GWB was a big spending liberal republican that put our financial future in peril, what say you about Oblamer. He has taken lessons from Bush and decided he can spend even more. No budget, no accountability, no plan to pay down the deficit or debt, more expensive government programs, more expensive vacations, wasted government spending that accomplished little.
What is the difference in “two wars for 7 Years and Never budgeting for either Is…..?
AND, no budget for three years (1040 days) for two wars, operation of the military, the federal government, debt, entitlements, infrastructure, executive branch, legislative branch, judicial branch, foreign aid, etc.
At least with Bush we had a budget which controlled spending for everything, but the two wars!
Linda
February 14th, 2012
3:00 pm
Just@2:25, When our son was young, he stuck a metal object into an electrical plug. He never did it again. That’s one of the definitions of a Republican.
Democrats keep sticking metal objects into electrical plugs. They keep looking for paperclips, ice picks, hair pins & tweezers. Whatever hair they have left is sticking straight out. They just keep stimulating & stimulating. I call it Band Aid & Bucket Economics. When the tree hits the roof, Democrats put a band aid on the ceiling & a bucket on the floor.
As of 2/09, when the economic stimulus bill was passed, the two wars you mentioned had been waging for 7 yrs. in Afghanistan & 6 yrs. in Iraq, 13 yrs. total. The accumulated cost at that time was almost exactly the cost of the economic stimulus bill, about $1 T. Was the Democrats economic stimulus bill in any way MORE budgeted than the wars? The most expensive bill ever passed in the history of the world, passed in a fleeting moment, was a total waste, as has been all the other efforts to stimulate the economy, none of them paid for.
GT
February 14th, 2012
3:12 pm
The difference between the Tea Party and the Republicans are the Republicans know they are lying, the Tea Party thinks it is telling the truth as it clogs the Congress and results into the lowest ratings of just about anything in the life of ratings. “You know God I thought it was cool with You to hate, juice a few innocent black people, finding out later the DNA proved em innocent, chase God fearing Christian over a desert till they dropped dead, molest children, hate gays and beat women.” And you who hate welfare, if He gives you a pass and He very well may do it, have received the largest welfare check the world has ever known.
MrLiberty
February 14th, 2012
3:22 pm
Ron Paul’s budget proposal – $1 Trillion in cuts the FIRST YEAR, and a balanced budget by the end of his first term.
Only Ron Paul points out that any budget cuts extending past two years are WORTHLESS as another congress could potentially be elected and could overturn the cuts, etc. If the cuts aren’t done in YEAR ONE, they aren’t worth a damn. Newt, Willard, and Rick propose NO serious cuts in anything and obviously Obama isn’t serious either. Thank goodness Ron Paul is running so that we can have a clear choice in favor of small government and principled politics. Ron Paul 2012.
jms
February 14th, 2012
3:26 pm
JKL2: “When the value- Hey! Let’s get that dollar down to ZERO! More work
Now you are going to dis the presidents immigration policies too? (make the dollar worth a peso, then they will stop coming here).
I would tell people to move to Mexico for the “good jobs” but their immigration laws won’t allow it.”
Here’s where not have a border fence will come in handy. Forget Mexican law, I’m scrambling across that open border to the good jobs!
Tiberius - Your lightning rod of hate!
February 14th, 2012
3:26 pm
GT, focus.
The PRESIDENT submitted a budget, not the Congress.
Tell us please how his continuing to run up TRILLION-plus annual deficits after promising to cut the deficit in half by the end of his first term doesn’t constitute lying on the part of this Disaster-in-Chief.
MrLiberty
February 14th, 2012
3:28 pm
DawgDad – Great comments, but then why are so many Tea Party groups supporting Newt, Mitt, and Santorum and not getting behind Ron Paul 100%. Clearly he IS the only candidate supporting sound economic policies, sound foreign policy, sound monetary policy, and serious cuts in government size. We certainly cannot support nearly 1000 bases in over 150 countries and also cut the budget by a sizeable amount. We certainly cannot afford yet another war in the middle east just to line the pockets of the military industrial complex. We certainly cannot afford to continue to give billions and billions to foreign dictators while we sit on $15 Trillion in debt and over $150 Trillion in unfunded liabilities. What is the point of the Tea Party movement if they are just going to support the same big government policies that got us into this mess?