The American Spectator : The Spectacle Blog : CBO: Obama Budget to Add $4.8 Trillion to Deficit Through 2019

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CBO: Obama Budget to Add $4.8 Trillion to Deficit Through 2019

By Philip Klein on 3.20.09 @ 3:20PM

Today the Congressional Budget Office has released a brutal analysis of President Obama's first budget, determining that it would create cumulative deficits of $9.3 trillion between 2010 and 2019, which is more than double the $4.4 trillion baseline CBO projection under current law. The CBO deficit projections for the Obama budget are $2.3 trillion higher than the estimates made by the White House.

The CBO also had to revise upward by $400 billion its baseline deficit estimates for 2009 ($1.7 trillion) and 2010 (now $1.1 trillion), but if the Obama budget passes, those numbers rise to $1.8 trillion in 2009 and $1.4 trillion in 2010. Either way, they are the largest deficits as a percentage of GDP since 1945, when the country was paying for WWII military spending.

CBO expects those deficits to decline as the economy improves, but looking at the chart below demonstrates how much worse the deficits will be if Obama gets his way. The lower the line, the wider the deficit.

Total Deficit or Surplus (Percentage of GDP)

View all comments (4) | Leave a comment

Poor Guy| 3.22.09 @ 2:13AM

This chart assumes, of course, that we'll have no more of these "temporary" bailouts and stimuli. Given 0's track record so far (and that of our atrocious Congress), how credible is that assumption?

Pingback| 5.14.09 @ 10:29PM

Duh! « Sterling James Estates links to this page. Here’s an excerpt:

…debt is health care, so we have to drive down costs,” he said. [...] And whose bright idea was it to submit a $3.6 trillion FY2010 budget to Congress that would generate cumulative deficits of $9.3 trillion between 2010 and 2019, put the government’s bailout program on steroids, and (secretly) abolish welfare reform all while pushing for national bankruptcy-inducing universal health care? The…