Friday, January 28, 2011

Federal Budget Deficit to Reach Record $1.5 trillion in 2011

At WSJ, "Deficit Outlook Darkens: Stark Warning for 2011 Fuels Battle Over Government Spending and Taxation":

WASHINGTON—The federal budget deficit will reach a record of nearly $1.5 trillion in 2011 due to the weak economy, higher spending and fresh tax cuts, congressional budget analysts said, in a stark warning that will drive the growing battle over government spending and taxation.

At that size, the deficit—up from $1.29 trillion in 2010—would be roughly $60 billion more than the White House projected last summer, the nonpartisan Congressional Budget Office said Wednesday. Last year's tax-cut package alone will add roughly $400 billion to the deficit, the CBO said. As a percentage of the nation's economic output, the 9.8% deficit would be the second-largest since World War II, behind only the 10% level in 2009.

The grim outlook landed a day after President Barack Obama outlined plans to push for new spending that he said would help keep the U.S. globally competitive in his State of the Union speech, and the data could complicate that effort. Republicans have dismissed the president's plans as ignoring the more pressing need to reduce the deficit.

Wednesday, the battle lines sharpened. "This report is a reflection of the gross mismanagement of our nation's finances," said Rep. Tom Price (R., Ga.). "It should make every American think twice about the latest calls by the president to increase spending at a time when Washington can clearly not afford to pay its bills."
More at the link.

RELATED: At Fox News, "CBO Director: Trillion-Dollar Deficits Risk 'Fiscal Crisis' in U.S."

1 comments:

Dennis said...

One cannot have a revolution of the proletariat if there is no proletariat of any size to incite to riot and revolution. What better way to create that proletariat than ruin the economy with this kind of irresponsible, profligate spending.
There never was a plan to create jobs in the private sector by the Obama administration and people on the Left. If there was they would never have done everything possible to tie the hands of the very people who create jobs.
So far we have been lucky enough, thanks to the TEA party and others, to have large numbers of people who saw through the facade erected by the Left and Obama.