Obama and Democrats Spending Spree: Trillions in National Debt Increase

President Obama and the Democrat Congress’s spending spree results in federal budget deficits and adds trillions to the national debt

FROM THE COUNTY CHAIRMAN’S DESK

Montgomery County Republican Party

Walter D. (Wally) Wilkerson, Jr., MD

March 2011

 

After listening to President’s Obama’s State of the Union address, I agree with the Wall Street Journal’s assessment on January 27: “President Obama’s political message in the State of the Union address boils down to this: Republicans, it’s your budget problem now.” Never mind that he and the Democrat Congress’s spending spree has resulted in federal budget deficits beyond any that we could have imagined, while adding trillions to the national debt. Less than 12 hours after the President’s address, the Congressional Budget Office (CBO) released its annual budget review revealing how deep the fiscal mess created by Obama really is, and called it “daunting”.yyy

The CBO predicted the federal deficit for the fiscal year of 2011 ending in September is expected to rise to $1.48 trillion. That is 9.8% of the Gross Domestic Product (GDP). The Wall Street Journal noted that this percent of the share of the GDP has been topped since WW II only by the 10% reached by Obama in 2009, his first year in office. The annual deficit in those greedy Reagan and Bush years of the 1980s never exceeded 6% of the GDP.

So the political debate in Washington is this: Do we have a revenue problem or a spending problem? Republicans and most of the American people rightly believe we have a spending problem! The numbers tell the story. After falling slightly last year due in part to bailout (TARP) repayments, federal government spending will climb again in 2011 to 24.7% of GDP. Total federal spending will have increased by over $1 trillion in just four years. Without spending cuts, government spending will remain above 23% for the remainder of the decade, and our national debt will continue to rise.

Obama has proposed a freeze on domestic discretionary spending for five years. The Wall Street Journal accurately described this proposal a “feint not a freeze”. Republicans have proposed spending cuts, and have outlined them in detail. The spending Reduction Act of 2011 would reduce federal spending by $2.5 trillion dollars over ten years. A summary of the Act developed by the Republican Study Committee (RSC-U. S. Representative Jim Jordan, Chairman, 1524 Longworth HOB Building, Washington, DC 20515) is available at the Republican Headquarters in Conroe. Call 936-441-5621, and a copy will be mailed to you.  Internet address for the RSC summary is: http://rsc.jordan.house.gov/solution/sra.htm.

Here is a very brief summary taken from the Study Committee:

  • Replace spending levels in the current FY 2011 continuing resolution (CR) with non-defense, non-homeland security, non-veterans spending at 2008 levels. Any funding to carry out any provision of Obamacare, or to defend any lawsuit challenging a provision of the act will be prohibited. $80 billion savings.
  • Eliminate automatic increases for inflation from baseline projections for future discretionary appropriations For Year 2012-2021. $2.29 trillion over ten years.
  • Eliminate automatic pay increases for civilian federal workers for five years. Additionally, cut the civilian workforce by a total of fifteen percent through attrition. Savings included in $2.29 trillion savings.
  • Eliminate all remaining “stimulus” funding. $45 billion savings.
  • Eliminate federal control of Fannie Mae and Freddie Mac. $30 billion savings.
  • Elimination or reform of more than 100 specific programs some of which are listed below. $330 billion savings over ten years included in $2.29 trillion savings.

Corporation for Public Broadcasting, National Endowment for the Arts, National Endowment for the Humanities, Amtrak subsidies, New Starts Transit, Intercity and High Speed Rail Grants, Programs under the National and Community Services Act, Applied research at the Department of Energy, U. S. Agency for International Development, Presidential Campaign Fund, collection of unpaid taxes by federal employees, prohibition of taxpayer funded union activities by federal employees and sale of excess federal properties.

Many of these programs would be worthwhile, but we would have to borrow the money to fund them. How can we ask our children and grand-children to pay for our extravagavances? Spending cuts are forthcoming, so get ready for the whining from liberals and their media accomplices. We must support our Congressmen and Senators as they proceed to put our federal government’s finances back in order.