Economics

Sure, Obama has a debt plan. Here it is …

This chart comes straight from the Obama White House. It shows the nation’s debt trajectory under President Obama’s latest budget plan. This is why many folks, such as myself, say the president has no long-term budget plan. Unless you consider letting the nation’s debt explode — and the economy along with it — to be a realistic budget plan. If so, then I guess the president does have a plan. If so, then I concede the point to people like liberal writer Jonathan Chait. Look at the above chart to see the Obama debt plan.

But guess what? Treasury Secretary Tim Geithner concedes his boss does not really have a plan. Testifying before the House Budget Committee today, Treasury Secretary Tim Geithner told Chairman Paul Ryan the following: “We’re not coming before you to say we have a definitive solution to that long-term problem. What we do know is we don’t like yours.”

And here’s what the bipartisan Committee for a Responsible Federal Budget says about the president’s plan:

Over the long-term, the President’s budget would not constrain rising debt, as retirement and health care costs continue growing faster than the economy. According to the Administration’s own estimates, debt would grow as a share of the economy past 2022 exceeding 93 percent by 2035 and nearly 125 percent by 2050. These levels would be both economically constraining and ultimately unsustainable.

I wish the president did have a public plan, one that showed just how high taxes would have to go to pay for his desired level of government spending. After all, Rep. Paul Ryan has offered a long-term budget plan that shows how much spending would need to be cut to keep taxes low. Once again, to quote Geithner, “Plan beats no plan.” And right now, Obama has no plan.

 

 

One thought on “Sure, Obama has a debt plan. Here it is …

  1. The so called debate on the budget and debt between Obama and Conservatives is based on a total misconception. Conservatives assume, naively, that the budget, the debt, etc. are something Obama and the Dems give a rat’s ass about. Wake up, dude and dudette conservative, this is not true. They, meaning Pelosi, Obama, and the entire Dem Senate, House, and blogosphere think the budget and the debt are complete irrelevancies. They assume, as a matter of deep abiding faith as progressives, as a tenet and pillar of the Progressive religion, that budget and debt will take care of themselves, as the idiot Krugman and others of his ilk have clearly stated.

    There is some smidgen of a granule of substance to this view, namely, look how in history, huge sovereign debt was always taken care of, and dealt with successfully. So after WWII the US was in debt up to its eyelashes. Same after the Civil War. Same after WWI. Same true for the world,and Britain and Europe, after the Napoleonic wars – 1815. Same true for Germany and Weimar after WWI. And guess what? None of those incredibly large debt proved to be a disaster. They were all “solved”. Either by inflation, or war, or growth.

    This is not a zero sum game. New energy and money, coming from human ingenuity or rapaciousness, or thievery, or productivity, always seems to come along and pay off the debt somehow. The left Dems see this, and assume the same will happen today in Europe and Greece and the US. Who knows, they could prove to be right.

    They are wrong, of course, but they still could prove to be better predictors of the future than we conservatives. Not that that discourages me and probably anyone else from striving to solve the budget and debt problem the way it should be solved. By cutting spending. By incentivizing free enterprise, by removing stultifying regulation, by lowering taxes, by drastically shrinking government. The Dems prefer to wait for a miracle, and the funny thing is that miracles do happen. Black swans, wild cards, and the Israeli attack on Iran…all these things can and maybe will happen.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>