TAKE HOME: Increased government spending and inevitable tax increases will hurt our economy.
KEY DATA: Spending is up 20% from this time last year and up 88% since 2001. (Source: CBO)
Deficits matter. Nine months into this fiscal year and we are already $1 trillion in the red. The Congressional Budget Office (CBO) predicts that number will climb to $1.84 trillion by September.
Deficits aren’t always a big problem. As long as the economy is growing at a decent rate and the deficit is a low percentage of Gross Domestic Product (GDP), it’s not that big a deal. But the economy has been shrinking while the government has been growing.
Spending is up 20% from this time last year and up 88% since 2001. Yes, President Bush spent way too much, but President Obama is doubling down like a blackjack player in Vegas, and he keeps losing.
Unemployment is higher than the Obama administration claimed it would be without the stimulus. Yet, the president tells us the package has “worked as intended.” Really? We’re nearing double digit unemployment and the only sector that is adding jobs is the government sector.
Obama’s statements about the economy are so unbelievable that even his teleprompter can’t take it anymore. It collapsed to the floor during his recent speech on urban and metropolitan policy.
“That’s one reason why we took swift and aggressive action in the first months of my administration to pull our economy – CRASH! BANG! BOOM!Éto pull our economy back from the brink.”
I’m with you TOTUS.
Without congressional action, our spending will continue to increase at unsustainable levels. The Baby Boomers are starting to take money out of their retirement accounts, Social Security, and Medicare instead of putting money in. The only way out of this mess is to grow the economy and control spending. Instead, the president wants to spend trillions more on healthcare and energy “reform.”
All this spending is leading the Democrats to tax increases. Rep. Charlie Rangel, D-NY, is pushing for a $500 billion surtax on “the rich.” This will hit one of our biggest job-creators, small business owners, especially hard. Rangel also wants a surcharge on some investment income. Does anyone think these types of higher taxes are going to turn our economy around?
Oops, I think I just heard another teleprompter crashing.
Greg Knapp is the host of The Greg Knapp Experience radio show.
