Blinded with AIG-rage it seems much of America missed the Congressional Budget Office's new analysis of the economic outlook including consideration of President Obama's 'New Era' budget outline.
From the CBO Director's blog:
Largely as a result of the enactment of recent legislation and the continuing turmoil in financial markets, CBO’s baseline projections of the deficit have risen by more than $400 billion in both 2009 and 2010 and by smaller amounts thereafter...CBO now estimates that the deficit will total almost $1.7 trillion (12 percent of GDP) this year and $1.1 trillion (8 percent of GDP) next year—the largest deficits as a share of GDP since 1945.Then a little bit of hopeful news. The CBO reports that assuming current laws and policies remain in place:
Deficits would shrink to about 2 percent of GDP by 2012 and remain in that vicinity through 2019.And:
Outlays are projected to decline from 27.4 percent of GDP in 2009 to about 22 percent in 2012.Of course, Obama was not elected to keep current laws and policies in place. His mandate was for change. The CBO analysis of the Obama budget proposal is an avalanche of negative economic news:
As estimated by CBO and the Joint Committee on Taxation, the President’s proposals would add $4.8 trillion to the baseline deficits over the 2010–2019 period. CBO projects that if those proposals were enacted, the deficit would total $1.8 trillion (13 percent of GDP) in 2009 and $1.4 trillion (10 percent of GDP) in 2010.I would love to give Obama the benefit of the doubt, but the problem is that I doubt the benefits of his budget plan.
These numbers are not from Rush Limbaugh or some other right wing bogey man. These are from the Congressional Budget Office, and under every measure cited, we appear to be worse off under the Obama budget.
Deficits under current law, about 2% of GDP for the years 2012-2019. Under Obama, 4-6%.
Cumulative deficit for 2010-2019 under current law, $4.4 trillion. Under Obama, $9.3 trillion.
Debt held by the public in 2019 under current law, 56% of GDP. Under Obama, 82%.
Note carefully! These are figures for 2010 and beyond. This is not the short-term deficit spending that may be necessary to address the current crisis. These figures are the result of new, higher levels of permanent government spending.
The Obama budget promised to signal a new era and on that note it certainly has delivered. The only responsible thing to do, however, is oppose it.