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The Spectacle Blog

CBO Sees Obama Budget Bringing Debt to $20 Trillion By 2020

By Philip Klein on 3.8.10 @ 4:48PM

The Congressional Budget Office has released its assessment of President Obama's budget, and the results aren't pretty. According the analysis, deficits in the next decade will be worse than what the White House has projected, much higher than they would be if we were to follow current law, and even higher than what CBO had forecast last year.

Between 2011 and 2020, the nation will accumulate $9.8 trillion in deficits as a under the Obama budget, according to the CBO, ending the decade with $20.3 trillion in public debt, which translates into a staggering 90 percent of gross domestic product (compared with the 53 percent Obama "inherited" in 2009). By contrast, in its own budget release, the White House Office of Management and Budget had projected debt at 18.6 trillion in 2020 (or about $1.7 trillion less than the CBO).

Obama's budget would also add more to the debt when it is viewed relative to the CBO baseline scenario that assumes current law is followed, as demonstrated by the area chart below. The blue area represents the additional debt created by Obama's budget -- while it may not look huge, the difference reaches about $5 trillion relative to the CBO baseline scenario (or added debt of 23 percent of GDP) by 2020.

These projections have gotten worse in the past year. For instance, when it assessed Obama's budget last March, the CBO projected debt of $17.3 trillion in 2019 -- it now sees debt reaching $18.9 trillion that same year.

View all comments (26) | Leave a comment

Seek| 3.8.10 @ 6:16PM

How many times do I have to say it? This president is incapable of understanding even rudimentary economics.

Hawaii Fiv Oh| 3.11.10 @ 1:23AM

This person who poses as a legitimate president is incapable of understanding how to balance his own checkbook. His arrogance prevents him from learning because he believes he's the messiah.

Lazy Jack| 3.8.10 @ 8:25PM

Are any of us "Shocked" to find gambling going on in this establishment?

If you are, you either have not been paying attention, are happy to watch the fiscal carnage, or are hopeful, deluded socialists incapable of drawing the obvious conclusions as that particular political fantasy destroyed Russia, Cuba, most of China, Venezuala, etc. Oh, and it is about to topple Greece, Spain, and Portugal.

But, Let's keep offering free lunches for all.

Best,

Lazy Jack

www.thanksforthelaughs.wordpress.com

Lazy Jack| 3.8.10 @ 8:26PM

Are any of us "Shocked" to find gambling going on in this establishment?

But, Let's keep offering free lunches for all.

Best,

Lazy Jack

www.thanksforthelaughs.wordpress.com

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Greg, junk debt buyers guide| 7.7.10 @ 4:49PM

that's it, I'm moving to Canada? ;O)

Pablo Flamenco| 7.29.10 @ 9:20AM

Really?
Come to Australia instead!

Jerry| 7.24.10 @ 1:17PM

oh wow! The American people have absolutely no conception for a single one trillion dollars, much less $20 trillion. Generations to come will have a lower standard of living! There is no way around it, unless.......

This country is rapidly moving into the past, much like the Roman Empire did. When government doesn't care, it collapses.

Wake up Americans!

Loans Arranger| 7.24.10 @ 1:49PM

What is it with politicians? They all make sure they do a good job of promoting themselves when it comes to election time, but once they are in power they prove to be just as bad as the ones who have just been voted out!

Wilber the Wildcat| 7.24.10 @ 5:37PM

I believe that this budget crisis is only running its natural course as set in motion during the Bush administration. Fixing the problems created during that era of failure now fall to the current president. It will take years and TONS of money to fix problems that were created during the wild, free for all orgy of deregulation that was the W era. It is financing the wars that Bush started by lying to the country that is killing us. If we didn't spend so many HUNDREDS OF BILLIONS of dollars trying to fight a ghost in enemy territories then perhaps we could handle our business here at home. Have we not seen how greed influenced foreign policies have come back to haunt us? The Obama spending plan may be extreme but is to some degree necessary to repair the grievous problems that George Bush and his cronies created before leaving office.

toddason| 7.26.10 @ 10:09PM

I can't wait until we throw this guy out of office. Maybe he should try starting and running a business just once in his life -- he might learn a think or two.

Karen| 7.28.10 @ 1:12AM

It makes me sick to think how we are leaving such a debt for our grandchildren. All these bailouts, etc., are going to cause so many trials for the next generations.

Jim Miesch| 7.28.10 @ 6:32AM

The thing that frustrates me most isn't the bailouts, massive debt, the racial politics happening now or even the debt we're leaving with our children's children... those things boil my blood but the single most frustrating thing for me is the feeling that everything we're seeing happen on the left and right is part of an elaborate magic trick. I guess I just wish we could have at least one elected official that had actions that were consistent with our, the people's, desires.

We can all wish right?

Jay| 7.28.10 @ 4:04PM

I find it very difficult to believe that this is all being done throught ignorance. There has to be a deliberate element to his moves to bankrupt this country.

Mark Pittsburgh contractor| 7.28.10 @ 5:20PM

We the people need to open our eyes and speak up. The way things are going in our country is on a downward spiral, and the only people out there speaking up are the quacks and that does not help us at all.

So people wake up and start call your congress man, if we let the quacks convince them its the public's voice we then this country will become 2nd rate to its former glory

Tom Boyd| 7.30.10 @ 12:33PM

wow that is so much debt... Something needs to be done.

Don Wilson| 7.31.10 @ 12:38AM

I think the government should put the shoe on the other foot and we should turn them to collections. That way when Obama is eating dinner her can get a call. That way he can be saying stop collection calls.

Dell| 8.15.10 @ 1:01PM

Will it never end? This administration is destroying everything I know of as America: healthcare, medicare, traditional marriage, and respect of ground zero.

Alonzo| 8.15.10 @ 1:29PM

Just remember this coming November: let all these idiots enjoy their retirement from politics.

Victor| 8.16.10 @ 10:20PM

I can't believe what's happening to this country in so short a time. If the Republicans do get back in, they better not blow it like they did under Bush.

Norman| 8.19.10 @ 6:39AM

As an outside observer of American Politics especially considering their influence on the rest of the word. It is gratifying to see the glitz and glamour around Mr Obama finally wearing of, confirming my own reservations.

Sam| 10.8.10 @ 2:49PM

I'm trying to be optimistic, however, too many Americans are too into MTV, ESPN and American Idol to know or even care about politics.

Suellen| 10.14.10 @ 11:19AM

I think it's great that Obama is trying to raise the statistics of college graduates by 2020. I would love to see colleges in Tampa Bay output more graduates than in the years past.

Suellen,

Editor, CollegesinTampaBay.org - A Directory of Colleges in Tampa Bay

Caitlin from Backlink Building| 11.10.10 @ 2:15PM

I hope we could still get through this. After all, we are Americans!

chloe jones| 11.24.10 @ 5:26AM

Every politician is the same regardless of your personal political persuasion. They promise everything and deliver nothing unless they are forced or shamed into taking action.