It’s huge. It’s mind-boggling. It’s the Obama administration’s new budget proposal. A decidedly non-conservative source—the Associated Press—warned,
Not since World War II has the federal budget deficit made up such a big chunk of the U.S. economy. And within two or three years, economists fear the result could be sharply higher interest rates that would slow economic growth.
What led the AP to issue such a dramatic prognosis? The new Obama budget calls for a record deficit of $1.65 trillion this year. The AP continues,
That would be just under 11 percent of the $14 trillion economy—the largest proportion since 1945, when wartime spending swelled the deficit to 21.5 percent of U.S. gross domestic product.
The deficit is getting to the point where it’s virtually out of control:
Ah, but not to fear, we’re told there are spending cuts contained within:
Here’s another way to illustrate it:
Republicans have rejected the Obama budget outright, saying it’s not really dealing with the problem. Will they have a better approach? Will they have the stomach to do what’s necessary to get this under control, which includes entitlement reform? I remain hopeful. Even if they don’t do everything they should, it ought to be better than what the president has proposed:
Yet the Obama administration refuses to yield on the idea that massive spending is required to pull us out of the recession. Treasury Secretary Timothy Geithner said yesterday that it would be a mistake to stop “investing” in the economy. Of course, “investing” has been given a brand new definition lately:
This is economic lunacy. Republicans now have to inject a sense of responsibility into the process. Both sides are talking about having an adult conversation on the economy. If this is what Obama calls an adult conversation, it appears the Republicans are going to have to talk to themselves.