02.13.2012 0

Obama proposes borrowing another $1.3 trillion, no real cuts to speak of in budget


Photo Credit: White House/Flickr

By Bill Wilson — Once again, the Obama Administration is proposing to borrow another $1.3 trillion to pay for unsustainable increases in government spending, which under the budget will not be cut on a net basis any year over the next decade. There are no real reforms proposed to prevent entitlement programs from dragging the Treasury into the Abyss of insolvency. Meanwhile, he is proposing to increase taxes by $1.5 trillion over the next 10 years on job creators that will only further slow down the economy.

Obama wants to pretend that there are $2.50 in ‘cuts’ for every $1 in increased taxes, but since spending increases every year under his proposal, such math is impossible. It is just another imaginary number from the government; pure propaganda designed to prevent the American people from seeing the true dire straits our fiscal house is in.

This quarter, the national debt will grow to be larger than the entire economy, probably never to return to below 100 percent of the GDP. The reason is because while the economy only grows at a tepid pace of less than 2 percent, the debt continues to expand by about 10 percent every year. No country has ever sustained such borrowing. Remaining the world’s preeminent economic superpower is unfeasible under such policies. Obama is pursuing a purposeful policy of national decline.

Bill Wilson is the President of Americans for Limited Government. You can follow Bill on Twitter at @BillWilsonALG.

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