A $3.55 trillion budget

Spending “only” $3.55 trillion is considered to be fiscally responsible?

President Obama inherited a more than $1 trillion deficit from the idiot George Bush, but he’s tacked on more than his fair share already.  The current estimate of the deficit is now up to $1.75 trillion for fiscal year 2009, which started on Oct 1st, 2008.

Here’s a story from the NY Times about the budget.

His administration will attempt to close the large fiscal gap even while starting a major health-care initiative intended to substantially extend coverage; to do so, it foresees increasing taxes on the wealthiest Americans and using revenue from a new program: selling carbon credits to manufacturers as part of a cap-and-trade plan meant to slow climate change.

The forecasts are also founded on optimistic assumptions that the recession will end by next year and quickly produce stronger growth than was seen in the last decade. After the economy shrinks this year, the Obama team assumes that the gross domestic product, adjusted for inflation, will increase by 3.2 percent next year and then 4 percent or more the following three years, a rate nearly twice the average of the Bush years.

I wrote a post a few minutes ago where I talked about people saying that this is the bottom in various markets.  But Obama is basing his presidency on this year being the bottom.  I’m afraid he’s mistaken.

But here’s one bit of good news – Mr. Obama promised to include the full costs of the wars in all his budgets, saying that because of “dishonest accounting” past budgets have “not told the whole truth about how precious tax dollars are spent. Large sums have been left off the books, including the true cost of fighting in Iraq and Afghanistan.”

It’s about time that these costs were included in the budget.  We still have to pay them, but Bush somehow made the cost of these wars disappear. They didn’t actually disappear (look at the debt clock at the top of this page!) but they didn’t appear in his budgets – or the official deficits.

The State Department gets the biggest increase, rising from $36.7 billion this year to $51.7 billion next year, although Mr. Obama will not be able to keep his promise to double foreign aid.

There are literally hundreds of things I could say about the bloated, pork laden, unconstitutional (read it!) budget proposal.  None of it is new, and I complained about the exact same things when Bush proposed the massive budgets.  But I promise to get into a lot of the details when the official budget is released with actual line items that I can talk about.

But if you thought Bush’s budgets were mind boggling, the first one from Obama promises to be even worse.  My bet is that he’ll break Bush’s record $1 trillion plus deficit his first year.

gk

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