Hmmm! If sequestration and it’s $85 billion dollar budget cut is going to bring financial Armageddon to the United States, why were the $2.5 trillion in spending cuts Obama love to claim he made … so painless? Doesn’t make much sense does it? We are told by the Obama administration that our Beloved Messiah has already reduced the deficit by over $2.5 trillion. This was achieved by cutting spending by over $1.4 trillion and trimming domestic discretionary spending to its lowest level since the Eisenhower administration. We are told that … as a result of these savings and the strengthening economy … the deficit is coming down at the fastest pace of anytime in American history other than the demobilization from World War II.
Wow! Sounds too good to be true! And … that is because it is!
According to the Center on Budget and Policy Priorities … Obama justifies his “spending cuts” claims by comparing estimated deficits with the government’s baseline budget projections. However, he must be using a budget that was from some previous administration because, as I recall, there has been no federal budget approved since he was elected to office.
However, that being said … under the government’s “baseline budgeting” rules, budgets are increased every year by around 6% to account for population growth and inflation. On its face, the idea that government spending grows with inflation is not unreasonable. But far too often, it is misused by politicians, who claim a “spending cut” any time the actual increase is less than the automatic increase. Obama therefore can spend 2.5% more each year and claim that he’s cutting spending by 3.5%. I just love this new math!
Also, this $2.5 trillion cut is projected to occur over ten years. Which, in essence, means it will never happen! Nothing binds future officials to follow Obama’s so-called spending cuts! How many politicians that are in office now … will be in office five years from now … never mind ten?
And another thing! If this sequestration (which Obama originally put in place) is truly so bad … why doesn’t Obama simply issue forth with another Executive Order and put it on hold. We all know how much he loves his Imperial Decrees and he uses them judiciously … U.S. Constitution be damned!
The thing is that Obama wants to present the image that he is spending less, cutting deficits and lowering debt! That he is the only one who knows how to spend wisely … and that he is being unjustly accused of excessive spending by those hateful Republicans who simply want to push granny over a cliff in her wheelchair while murdering autistic children! But, this is all one big fantasy! Even through their cool aid created fog, Obama’s followers know that Obama has run trillion-dollar-plus deficits every year he has been in office. Even the liberal drive-by media has reported that fact … they just still blame Bush, ATMs, suicidal lemmings, Kiosks, migrating seagulls, and the Arab Spring!
All of this “progressive-liberal fantasy” becomes painfully obvious if we simply look at Obama’s own budget projections for 2011 to 2022. Obama’s own budget projections are presented in Summary Table S-1 of the 2013 federal budget. You can see for yourself …
You can see the line for “receipts” at the top; which translates to income from taxes and fees. Receipts dropped during the recent “recession” … but somehow, Obama’s budget optimistically projects a rise from $2.3 trillion in 2011 to $5.1 trillion in 2022! This is more than a doubling of tax revenues … which means that either our economy has to quickly grow dramatically … or any future taxes will be extremely painful.
Federal spending also shows a steep upward climb; increasing every year from $3.6 trillion in 2011 to $5.8 trillion in 2022. Do any of you cool aid drinkers out there happen to know how these number’s compare to the budgets of George Bush or even Bill Clinton? Just asking …
In each and one of these years, the federal government will run large annual deficits. Obama’s projection does show a decreasing trend in deficits, falling from the $1.3 trillion to a low of $575 billion in 2018! However, then in 2019 … it starts climbing again. The point to remember is that:
even when you reduce a deficit … you’re still spending more than you take in; and therefore … still increasing the national debt.
The real truth is that, according to Obama’s own projections, over the next ten years (the period for Obama’s much-touted $2.5 trillion reduction in government spending) … taxes, federal spending, and the national debt will actually double. Obama’s rapidly rising budgets are optimistically offset by fanciful revenue projections, but his projections will only hold if we actually experience the 4.3% GDP growth (that is figured into the calculations in Table S-1) every year for the next decade. What is the likelihood of that happening you might ask (If you are cool aid free)? Given our current lack of economic growth and the historical U.S. average of 3.2% growth, … not too good!
One last parting thought! Despite the fact that Obama stated during his first campaign that it was very, very un-Patriotic and un-American of then-President George Bush to do so … we are still, under Obama’s rule … still borrowing 40+ cents of every dollar we spend from the Bank of China! The interest on this debt, as it grows over this ten year period of $2.5 trillion in fake federal spending cuts, will be astronomical! If interest rates happen to spike and China calls in its note, what are we Americans going to do? I guess we will all have to learn to be good little communists and speak Chinese!