President Obama should be proud of the milestone reached by his administration today. Never before in the history of the United States have we had a $1 trillion budget deficit. Yay for us, the taxpayers who will be saddled with Obama’s reckless socialism for years to come. Perhaps we should get ourselves a cake with a trillion candles. Then again, that might be too expensive under cap-and-tax for it’s carbon output.
The WSJ reports:
WASHINGTON — The U.S. federal budget deficit broke through the $1 trillion mark in June, potentially complicating the Obama administration’s efforts to revive the economy and enact its longer-term policy agenda.
The U.S. Treasury Department on Monday said the government’s annual deficit reached almost $1.1 trillion by the end of June, a once-unthinkable level that could threaten any nascent economic recovery by undermining the dollar and driving up interest rates.
Surging deficits could also tie the administration’s hands in responding to the economy’s problems, by eroding support among voters and making Congress leery of adopting policies — such as an overhaul of the health-care system — that the administration believes are necessary for sustainable growth.
It could be hard to win congressional approval for another round of fiscal stimulus, if that was seen as necessary, even as the economy continues to lag and the unemployment rate continues to rise, hitting 9.5% in June.
Some budget experts questioned whether lawmakers had the political will to take steps — such as tax increases and spending cuts — to help get the deficit under control.
“Most anybody who’s being honest knows we’ve reached a point where we’ve got a very dangerous fiscal situation, and it won’t fix itself,” said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget. She said the White House and Congress should negotiate a broad plan to reduce deficits now.
President Barack Obama on Monday stressed the importance of enacting health-care legislation as a way to bring down long-term deficits. A spokesman for the White House Office of Management and Budget, Kenneth Baer, termed health-care reform “the key to our fiscal future.”
But some budget watchdogs worry that Congress eventually could pass health-care legislation that relies on uncertain long-term savings, while substantially increasing short-term government expenditures.
The Obama administration in May estimated that the annual deficit would hit about $1.84 trillion by the end of the fiscal year, an increase from February’s projection of $1.75 trillion. The administration also slightly revised upward its deficit estimates for 2010 and 2011, to $1.26 trillion and $929 billion, respectively.
Slumping tax receipts, particularly from corporations and individual investors, have contributed substantially to the widening gap, as has rising spending on social safety-net programs, economic-stimulus measures and aid to auto and financial companies.
By historical standards, the 2009 deficit — at 13% or more of the country’s gross domestic product — would be the U.S.’s biggest since the end of World War II in 1945, when it reached 21.5%.
For the reading impaired, they also have some nifty charts which illustrate just how absurd the government’s spending actually is:
Hot Air sums it up best:
Just absorb the zeroes for a moment. The US has already spent more than a
million billion trillion dollars than it expects to receive this year in revenue, and we have almost three full months left to go.
To me personally, the Sotomayor hearings are a distraction to us once again. Yes, she’s a liberal justice who wrongly believes in judicial activism, what’s new? She’s replacing a liberal and she’s one of the worst possible SCOTUS picks there ever was. However, we are being distracted from President Obama’s continued failure in the realm of economics and his continued bankrupting of our future.
Here’s the icing on this trillion dollar cake. This spending doesn’t even include the socialized health care overhaul or the cap-and-trade global warming scam legislation. This is just the deficit spending from stimulus-palooza which has been an utter failure producing nothing more than bloated government. Furthermore, the deficit will be $2 trillion by the end of the year so get ready for another celebration of failure.
That’s quite a feather in your cap, President Obama. You have driven this country into a $1 trillion deficit without even trying hard.