Monday, August 29, 2016

Obama Has Maxed Out The US Credit Card: He Leaves Clinton, Trump Too Poor For Infrastructure Spending, Free College, Daycare, Military, Etc.

From The Wall Street Journal, Opinion, "Another Obama Parting Gift: His final fiscal year federal budget deficit will increase by 35%:"
For the 2016 fiscal year that ends next month, CBO now forecasts that revenues will rise by only $26 billion while outlays will increase by some $178 billion. The federal deficit will therefore rise from $438 billion to $590 billion, the biggest deficit since 2013.
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As a share of the national economy, debt held by the public—the kind the Treasury must repay—will increase to 76.6% [of GDP] this fiscal year. That’s the highest share of GDP since 1950 when the debt burden was winding down after World War II. It was 52.3% in President Obama’s first year in office, and it usually is flat or falls during an economic expansion.

Source: The Wall Street Journal

No such debt reduction is on the horizon now. Thanks to ObamaCare and his refusal to reform entitlements, Mr. Obama has set the federal fisc on an even uglier path long after he’s left for a tour of the world’s great golf courses. CBO says spending will keep rising and so will debt as a share of GDP—to 77.2% in 2017, 79.3% in 2021 and 85.5% in 2026. (See the nearby chart.) All of this assumes no change in current policy and no economic recession. The odds of the latter are close to zero. [Emphasis added.]
With the CBO projected trajectory of increased future US debt under current government programs, even increases in tax revenues, as proposed by Clinton and others, will not give the next president money to establish new government funded programs.

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