Monday, March 29, 2010

Killing the Golden Goose Part Two--The Economy

According to the Congressional Budget Office (CBO), President Obama's FY 2011 budget will create almost $10 trillion in cumulative deficits over the next ten years. That is $1.2 trillion more than the Administration projected. Oops.

Oh yeah, I want these folks running my health care.

By 2020 the federal debt will reach 90% of Gross Domestic Product (GDP is the sum total of our national output). 90%. Imagine if your personal debt totaled 90% of your annual income--you would not be able to feed and house and clothe your family and meet the monthly debt service, never mind ever reducing the 90% debt burden. Your debt to income predicament would be unsustainable. As is the country's.

When Mr. Obama brought his hope and change to the presidency the federal debt hovered at a little over $6 trillion. That is equal to $56,000 per household. One year later the debt stands at $8.2 trillion ($72,000 per household) and is headed to over $20 trillion by 2020. In other words, in 2020 each household's share of the debt will be $170,000. That's change all right. Change to the tune of a 200+% increase in the national debt.

Government estimates are notoriously optimistic--often undershooting reality by over 100%--and there is no reason to think these projections will be any different. The process is fraught with potential surprises and inevitable spending increases. And the problem with the CBO's estimate is that health care has not yet been factored in. And by that I mean that though the actual expense of health care will be exorbitant to be sure, the greatest cost to American society may in fact be the number of people who will no longer be around to pay taxes thanks to Obama"Care."

The reckless immaturity of this Administration is stunning. Time to repeal Pelosi's Puppet Congress and get down to the real business of the people, like defense and national security. The primary purpose of government our Founders intended. We've got a great deal of work to do but so many before us have done so much more. It is indeed during these times we find what we are made of--the times that try men's souls.

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