Happy Fiscal New Year (with an Unhappy Obama Hangover)
by Dan MitchellToday, October 1, is the first day of the 2012 fiscal year.
And if you’re wondering why America’s economy seems to have a hangover (this cartoon is a perfect illustration), it’s because politicians had a huge party with our money in FY2011.
We don’t have final numbers for the fiscal year that just ended, but let’s look at the CBO Monthly Budget Report, the CBO Economic and Budget Update, and the OMB Historical Tables, and see whether there’s anything worth celebrating.
o The federal government spent about $3.6 trillion in FY2011, more money than any government has ever spent in a 12-month period in the history of the world.
o The FY2011 budget is nearly double the burden of federal spending just 10 years earlier, when federal outlays consumed “only” $1.86 trillion.
o The federal budget in FY2011 consumed about 24 percent of national output, up sharply compared to a spending burden in FY2001 of “just” 18.2 percent of GDP.
o Defense spending is too high, and has increased by about $400 billion since 2001, but the vast majority of the additional spending is for domestic spending programs.
o Federal tax revenue in FY2011 will be about $2.25 trillion, an increase of 7-8 percent over FY2010 levels.
o Economic stagnation has affected tax revenues, which are lower than the $2.6 trillion level from FY2007.
o Federal receipts amount to about 15.3 percent of GDP, below the long-run average of 18 percent of GDP.
o The Congressional Budget Office does predict that revenues will rise above the 18-percent average – without any tax increases – by the end of the decade.
o Record levels of government spending, combined with low revenues caused by a weak economy, will result in a $1.3 trillion deficit.
o This is the third consecutive deficit of more than $1 trillion.
o The publicly-held national debt (the amount borrowed from the private sector) is now more than $10 trillion.
With budget numbers like these, no wonder America has a fiscal hangover.
And let’s be blunt about assigning blame. Yes, Obama has been a reckless big spender, but he is merely continuing the irresponsible statist policies of his predecessor.
Fortunately, there is a solution. All we need to do is restrain the growth of federal spending, as explained in this video.
But we also know that it is difficult to convince politicians to do what’s right for the nation. And if they don’t change the course of fiscal policy, and we leave the federal government on autopilot, then America is doomed to become another Greece.
The combination of poorly designed entitlement programs (mostly Medicare and Medicaid) and an aging population will lead to America’s fiscal collapse.
Email this to a friend | Print |
Share on Facebook
| Tweet this
| 
Follow Us on Twitter
Subscribe via RSS
Got a Tip?
19 Comments
To my way of thinking I would gladly celebrate a decade of frugality, thrift and growth. In fact I would even serve it up with TEA!!!
How many years has the Senate and House NOT had a budget? Isn't this in our Constitution? Why are they not all in jail?
It's time to get the big-government, big-spending career politicians out of the White House, Senate and House! This is OUR money they are spending!!
Herman Cain 2012!
Since Nasty Nancy became Speaker.
There hasn't been a single budget passed since Obamugabe took office. Think about that !!
Why? The regressives don't want the country to see what they are willing to pay for.
It's Nazi Pelosi, just a minor adjustment.
Entitlement programs, corruption, and waste will truly be this countries downfall. Poorly run, medicare and medicade, will be merged into Obamacare by the progressives resulting in everyone's health insurance being dictated by unknown, faceless bureaucrats, dictating whether you will be given necessary medical procedures or not. I hope and pray all Americans understand the importance of the elections in 2012. This will be the real tale of where this nation is headed and whether is survives at all.
Same Same! We just have regional accent variations my friend!
I continually ask myself the same question. Isn't there any type of sanctions for not doing the job, or do we just have to rely on voting them out which seems to not be working very well.
I go back to the quote Al gore made when he was calling from the White House soliciting Democratic campaign contributions…….. There's no one with balls….
I do not think people comprehend how fast it can turn ugly or even what ugly is. We still have unions demanding more money, unemployed demanding more money, career food stamp recipients demanding more money, and our president demanding more money. If life as we know it ends, we will go back to biblical belief of if you don’t work you don’t eat. The irony is there will be little if any need for professors, media, politicians, attorneys, lobbyists, unions, welfare moms and baby daddies.
It's. Not economics (stupid) it's philosophy; they know what's best,the government is the Elite and we are the peasants who have no clue without their Leadership. Then when we don't follow willingly we are parasites and are terminated?
GOT IT!
Today, all I can think about is what this country will be like in November, 2012. Will we have nominated a GOP candidate with the nuts to do what needs to be done and get him/her elected? Will we have ousted enough of the RINO's, communists and leftists from congress to regain control of the Senate? Or will we slip so far that the hope of ever returning to what our founding fathers created for us is gone forever?
It is up to us to win this fight. We must all take part and do whatever it takes to knock down the walls that the leftists have constructed against freedom.
The Fed is supposed to be the one who takes the punch bowl away before the party starts.
Can't recall the last time that happened.
Drinking yourself sober does not work. Some uber-intelligent academic types can't wrap their minds around the idea.
Looters and moochers. the Gov loots, and the unions, welfare mommas, and unemployed slackers mooch. The well is dry, yet the moochers want more. And instead of trying to dig the well deeper as to produce more, they throw rocks in trying to raise the water level to get one more bucket full out. Soon there will be only rocks and then what will the moochers do?
Dear Mr. Mitchell,
Thank you, Sir!
Sincerely,
John Lepant Brighton CO
I'll know when Washington gets serious about the economic calamity they have caused, and it won't be a Great New Spending Program or a Great New Revenue Enhancement Program.
It will be the announcement that federal non-military payrolls are being reduced by 20%, along with 20% of all federal agencies, and a complete rollback of every single one of the 186,000 pages of new federal regulations enacted by the Obama administration over the past two years.
The unions won't like it. Neither will the professional left.
If only the Republicans had a candidate that they know would veto any budget that's not balanced. Not because that politician says so, but because you could look back at the voting record of the politician and see a consistent line of voting NO to tax increases, budgets that spend too much, or any type of legislation that goes against the U.S. Constitution.
Things you drink before the Obama Hangover……10 shots of tequila with a putrid oyster on the half shell shooter………White Russian with sour milk.
You must be logged in to post a comment.