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Morning Bell: A Sobering Wake Up Call
Posted By Conn Carroll On August 26, 2009 @ 9:16 am In Ongoing Priorities | Comments Disabled
Defending mounting job losses  despite his administration’s $787 billion stimulus package, Vice President Joe Biden told  ABC News George Stephanopoulos last month: “The truth is, we and everyone else misread the economy. The figures we worked off of in January were the consensus figures and most of the blue chip indexes out there.” This is just not true. Yesterday the White House released their Mid-Session Review  admitting that President Barack Obama’s policies would force our nation to borrow more than $9 trillion over the next ten years.
Commenting on the gap between the new $9 trillion number and the $7 trillion number the Office of Management and Budget used to sell President Obama’s budget to Congress, the Washington Post reports :
The extra $1.9 trillion in red ink mainly reflects the Office of Management and Budget’s adoption of more realistic — that is, more pessimistic — estimates of economic growth and unemployment. White House officials protest that their original, rosier numbers made sense at the time; actually, plenty of forecasters, including those at the nonpartisan Congressional Budget Office, made more accurate calls. This situation was foreseeable and should have been acknowledged earlier.
While it is good that the Obama administration is finally admitting that the fundamental assumptions driving their economic policy were wrong, the reality of our current budget deficit, and what President Obama’s policies threaten to do to our national debt over the next decade, are truly sobering. Heritage senior policy analyst Brian Riedl details the carnage :
And now for the real kicker: none of these numbers include the costs of Obamacare which would create another $1.5 trillion health care entitlement  on top of our existing unsustainable entitlement obligations . The OMB’s Mid-Session Review should serve as a wake up call to the American people. President Obama’s policies are leading us down a path of unsustainable spending and borrowing.
There is another choice. Not all future spending is inevitable.  In the 1980s and 1990s, Washington consistently spent $21,000 per household (adjusted for inflation). Simply returning to that level would balance the budget by 2012 without any tax hikes. Alternatively, returning to the $25,000 per household level (adjusted for inflation) that Washington spent before the current recession would likely balance the budget by 2019 without any tax hikes. So with very little sacrifice, and no new taxes, the government could get its budget under control and the American economy could get fully back on track in three years. Isn’t that worth considering?
Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2009/08/26/morning-bell-a-sobering-wake-up-call/
URLs in this post:
 mounting job losses: http://www.foundry.org/2009/08/07/jobs-down-247000-mission-accomplished/
 told: http://abcnews.go.com/print?id=8002421
 Mid-Session Review: http://www.whitehouse.gov/omb/blog/09/08/25/Mid-SessionReview/
 reports: http://www.washingtonpost.com/wp-dyn/content/article/2009/08/25/AR2009082502734.html
 details the carnage: http://www.heritage.org/Research/Budget/wm2595.cfm
 $1.5 trillion health care entitlement: http://www.heritage.org/Research/HealthCare/wm2498.cfm
 existing unsustainable entitlement obligations: http://www.heritage.org/Research/SocialSecurity/bg2291.cfm
 Not all future spending is inevitable.: http://www.heritage.org/Research/Budget/sr0063.cfm
 Republicans joined Democrats: http://news.yahoo.com/s/ap/20090826/ap_on_go_co/us_kennedy_reaction
 with ties to President Obama and Hillary Rodham Clinton: http://www.nytimes.com/2009/08/26/nyregion/26fraud.html?hp
 Democratic-leaning political committees and was paid $500 by the leftist Colorado Citizens Coalition: http://blog.heritage.org http://www.denverpost.com/recommended/ci_13199902
 H.R. 3200 does not contain any restrictions on noncitzens: http://corner.nationalreview.com/post/?q=NTk1ODA5MmM5MjY5ODU5ZGI1ZGNmZTFjODMyNTdmNTU=
 said: http://www.politico.com/blogs/bensmith/0809/Feingold_Were_headed_in_the_direction_of_absolutely_nothing.html
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