Try this type of business model and see how it works. Even with the unrealistic information provided by the administration, the spending is unsustainable. The conclusion must be the politicians are too stupid, don’t care or they are purposely trying to destroy the country. Investor’s Business Daily has a great article outlining the coming financial storm. The best case scenario is not pretty…
The budget scorekeeper’s outlook assumes discretionary spending restraint, broad-based tax hikes and well-behaved interest rates. Nevertheless, it sees debt reaching 90% of GDP in 2020, up from 53% at the end of 2009.
And here is the really bad news…
In the new Milken Institute Review, Len Burman, former director of the Tax Policy Center and now a professor at Syracuse University, calls CBO projections “wildly optimistic.”
“They presuppose that interest rates on government securities will remain historically low, and that the economy will grow at a historically healthy clip,” Burman wrote.
How can everyone outside the beltway not be outraged by the irresponsibility of the Government’s budgets? Make no mistake about it. The day of reckoning is coming as pointed out by Mr. Burman…
The bottom line here (and I do mean bottom): while nobody knows exactly how or when catastrophic budget failure will play out, disaster is assured unless the federal government reins in its profligate ways.
Even though President Obama has never run a business or met a payroll, he should know better. After all, he managed to make enough money to afford an expensive home in Chicago. Yet, his budgets are beyond anything a private citizen could ever try without going broke. Burman points out the unpleasant truth…
But the borrowing will hardly end when the economy recovers. President Obama’s 2010 budget projects almost $9 trillion in additional deficits in 2011-20. By 2020, trillion-dollar deficits will become the norm even in years of solid economic growth and low unemployment, rather than an unpleasant aberration linked to a deep recession.
How can theses acts of fiscal stupidity be seen as anything less that treasonous? How can our government continue down this path of spend, spend, spend? How can the public allow these scoundrels to remain in office? Maybe that’s why Ben looks so disappointed on the $100 bill.
Photo Credit: Paul Lauschke III