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Obama Proposes Spending another $75 Billion We Don't Have

February 2, 2015 in Economics

By David Boaz


David Boaz

President Obama is proposing to blow through the limits on the federal budget established in the 2011 Budget Control Act, known as sequestration. After years of soaring federal spending, that law actually led to modest spending decreases in 2012 and 2013. But now Obama wants to raise federal spending by $75 billion next year, in addition to the “automatic” rise of about $220 billion in entitlement spending, which his budget does nothing to slow.

Once again journalists are warning of “congressional dysfunction,” recalling the years without a budget, the debt ceiling fights, 11th-hour deals, and lame-duck showdowns that have characterized the past few years of budget politics.

Republicans and Democrats alike should be able to find wasteful, extravagant, and unnecessary programs to cut back or eliminate.”

Back in the summer of our discontent, 2011, when the airwaves were full of warnings about default, I talked to a journalist who was very concerned about the “dysfunction” in Washington. So am I. But I told her then what’s still true today: that the real problem is not the dysfunctional process that gets the headlines, but the dysfunctional substance of governance. The real dysfunction is a federal budget that doubled in 10 years, unprecedented deficits as far as the eye can see, and a national debt sailing past $18 trillion and 100 percent of GDP.

We’ve become so used to these unfathomable levels of deficits and debt — and to the once-rare concept of trillions of dollars — that we forget how new all this debt is. In 1981, after 190 years of federal spending, the national debt was “only” $1 trillion. Now, just 34 years later, it’s more than $18 trillion. Traditionally, the national debt as a percentage of GDP rose during major wars and the Great Depression. But there’s been no major war or depression in the past 34 years; we’ve just run up $17 trillion more in spending than the country was willing to pay for. That’s why our debt as a percentage of GDP is now higher than at any point except World War II. Here’s a graphic representation of the real dysfunction in Washington:

(Hat tip to the Washington Post for the original graphic and to Jonathan Babington for updating it.)

Those are the kind of numbers that caused the tea party movement and the Republican victories of 2010. And many tea partiers continue to remind their …read more

Source: OP-EDS

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