Someone has a plan to pay for all of this, right?
President Obama inherited a national debt of about $11.4 trillion dollars. That debt had accumulated since President Reagan grew the national debt from a mere $930 million to $2.6 trillion (he had promised in 1980 to 100% pay it off by 1983), Clinton accumulated another $1.6 trillion in debt over 8 years, and Bush 43 gave us $6.4 trillion of our national debt.
We were staggering under the national debt before President Obama. There should be no doubt however that the most prolific accumulators of national debt have had an ‘R’ after their name … until now.
The outlook now is that President Obama will break all records and double the national debt within just five years, hard to believe but PolitFact has looked at the numbers and found them credible.
Our annual GDP is $14.4 trillion dollars (2009). We will soon owe more than our country is even capable of producing.
From the Washington Post, on Sunday April 4, 2010:
“A study we conducted at the Tax Policy Center found that Washington would have to raise taxes by almost 40 percent to reduce — not eliminate, just reduce — the deficit to 3 percent of our GDP, the 2015 goal the Obama administration set in its 2011 budget. That tax boost would mean the lowest income tax rate would jump from 10 to nearly 14 percent, and the top rate from 35 to 48 percent.”
“What if we raised taxes only on families with couples making more than $250,000 a year and on individuals making more than $200,000? The top two income tax rates would have to more than double, with the top rate hitting almost 77 percent, to get the deficit down to 3 percent of GDP. Such dramatic tax increases are politically untenable and still wouldn’t come close to eliminating the deficit.”
President Obama has no hope of paying for the problems he inherited, much less pay for new programs. His numbers and calculations are deeply flawed. The economy will collapse of its own weight and we will be at 8-9% or greater unemployment through 2013-2016.
Bill4DogCatcher.com: I deeply believe that our economy will continue to improve through early summer 2010 and then take a dramatic downward plunge — perhaps before November or just after … our economy cannot sustain more debt. The dam will break and make 2008 look like a practice warmup.
And in all fairness to President Obama, I do not believe that the Republicans have a plan either. Actually they do or did have a plan called ‘starve the beast‘ which was to push the government (but not the country) to the brink of bankruptcy. The idea is to let economics do what they were not willing to champion through legislation. Once the beast really did start starving they had no plan … other than do more of the same. The bad news for President Obama is that he may deliver the coup de grace always wanted by starve the beast supporters — and it will happen with a Democrat at the helm.