Monday, February 14, 2011
When did Obama become a comedian?
Is Barack Obama trying to play a joke on all of us? The budget that the Obama administration has submitted for fiscal 2012 is so out of touch with reality that it may as well be a budget for "Narnia", "Fantasy Island", "Atlantis" or some other mythical land. You can view the hard numbers for Barack Obama's 2012 budget right here. Obama's budget assumes that the U.S. will experience economic growth of over 5 percent for most of the coming decade. That is so far-fetched that "optimistic" is not the right word for it. It also assumes that U.S. government income (primarily made up of taxes on all of us) will more than double over the next ten years. For 2011, the budget projects that the U.S. government will take in a total of 2.1 trillion dollars, and for 2021 the budget projects that the U.S. government will take in a total of 4.9 trillion dollars. For the Obama administration to assume that the federal government will be able to drain an extra 2.8 trillion dollars per year out of the American people by the year 2021 is ridicul0us beyond belief. In his new budget Barack Obama does propose some very, very modest spending cuts that he knows have no chance of getting through Congress. Barack Obama's budget for 2012 also does not even attempt to make any cuts to entitlement programs such as Social Security and Medicare. In essence, you can sum up Barack Obama's budget proposal for 2012 by saying that it is a complete and total joke. This budget is so delusional and so out of touch with reality that it is hard to imagine anyone taking it seriously.
Oh, but Obama is really trying to sell it hard. When Obama unveiled this new $3.7 trillion budget for 2012 at a middle school in Baltimore, he insisted that his plan will make it "so that every American is equipped to compete with any worker anywhere in the world."
Well, that is a nice sound bite, but as I have written about previously, unless Barack Obama suddenly finds a way to stop multinational corporations from paying slave labor wages to their workers on the other side of the globe the job losses in America are going to continue.
But that is a topic for another day. Getting back to the 2012 budget, Obama is proposing to cut more than a trillion dollars from federal budget deficits over the next ten years.
That sounds really good until you figure out that means that the cuts only amount to about $100 billion a year. Considering the fact that Obama's budget is projecting that we will have a $1.6 trillion budget deficit this year alone, that really is not a whole heck of a lot to be cutting.
The truth is that Barack Obama should be proposing spending cuts that are at least ten times as large if he was actually serious about addressing our budget woes.
But at least Obama is not proposing an increase in spending.
Oh wait, he actually is.
In fact, under Obama's budget, U.S. government spending will soar from 3.8 trillion dollars this year to 5.6 trillion dollars in 2021.
But the mainstream media is solely focusing on the budget cuts that Obama is proposing.
Apparently they are trying to cast him as some sort of "fiscal conservative".
Try not to laugh.
But the modest cuts that Obama is proposing are at least some place to start.
Under Obama's budget, approximately half of all government agencies will have their funding decreased from 2010 levels.
In fact, approximately 33 billion dollars would be saved by scaling back or shutting down 200 federal programs.
Of course Obama's fellow Democrats in Congress will never go along with many of these cuts, but at least it is something.
However, this is where most in the mainstream media stop their analysis.
They don't take a closer look at the numbers in Obama's budget.
They don't question the wacky economic growth assumptions.
They don't question the bizarre government income projections.
But even with the Obama administration's crooked numbers, the federal deficit still never drops below 600 billion dollars over the next decade and a total of 7.2 trillion dollars is still added to the national debt over the next decade.
If economic growth ends up being much lower, or if the U.S. government is not able to get twice as much money out of the American people by the end of the decade then the projections would look much, much different.
So where does the Obama administration assume all of that extra money for the government is going to come from?
Oh, from raising taxes of course.
The Obama budget assumes that there will be significant tax increases starting in the year 2013...