BURN BABY BURN

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666

HE’S NOTHING IF NOT CONSISTENT

THIS DEBT IS UNSUSTAINABLE

INSTANT OBAMA BUDGET GUEST: Rick Moran, is PJ Media’s Chicago editor and Blog editor at The American Thinker.

“President Obama released his ten year budget projections that envisions budget deficits rising to $687 billion by 2025 while adding $6 trillion to the national debt. The White House will project a budget deficit of $474 billion for this fiscal year which is 2.5% of GDP. The deficit is supposed to increase but the percentage of the deficit relative to GDP is predicted to remain fairly stable.

This is a political document, not a serious economic statement. The Congressional Budget Office, which is not usually given to flights of political fancy, had an entirely different outlook on the next ten years of budgeting:

In CBO’s projections, outlays rise from a little more than 20 percent of GDP this year (which is about what federal spending has averaged over the past 50 years) to a little more than 22 percent in 2025. Four key factors underlie that increase:

The retirement of the baby-boom generation, The expansion of federal subsidies for health insurance, Increasing health care costs per beneficiary, and Rising interest rates on federal debt.

Consequently, under current law, spending will grow faster than the economy for Social Security; the major health care programs, including Medicare, Medicaid, and subsidies offered through insurance exchanges; and net interest costs. In contrast, mandatory spending other than that for Social Security and health care, as well as both defense and nondefense discretionary spending, will shrink relative to the size of the economy. By 2019, outlays in those three categories taken together will fall below the percentage of GDP they were from 1998 through 2001, when such spending was the lowest since at least 1940 (the earliest year for which comparable data have been reported).

Where the White House sees deficits rising gently through 2025, the CBO sees a massive increase in the deficit by 2025 with red ink climbing to more than $1 trillion.”

READ: http://system01.catapultapps.com/s/1487/3/3166500/3467/tatler/2015/02/01/obamas-10-year-budget-will-add-6-trillion-to-the-national-debt/