President Obama’s Economy Sets New Deficit Record
President Obama has set another spending record. For the fifth straight fiscal year, the annual federal deficit will top $1 trillion.
Obama is spending at a break neck pace. The deficit reached $1 trillion one day before the end of the fiscal year’s third quarter that ended June 30.
At the current rate of spending, the deficit for the current fiscal year that ends September 30 will hit $1.3 trillion, higher than the deficit last year.
Before fiscal year 2008, the annual federal deficit had never exceeded $1 trillion. In fiscal year 2007, the deficit reached $500 billion. Then the real spending binge began.
The whole tab for runaway spending is staggering. At the close of fiscal year 2008, the total federal debt stood at $9 billion. Today it stands at nearly $16 trillion, a whopping $7 trillion increase.
A look at the U.S. debt clock (www.USDebtClock.org) tells another story. The Gross Domestic Product of the United States, the annual output of the entire U.S. economy, is about $15 trillion. The cumulative national debt is fast approaching $16 trillion. Only serious deficit reduction on an annual basis will chip away at the total debt. Yet the spending continues with no end in sight.
Down the road, the story gets worse. The entire bill for unfunded liabilities for federal entitlement programs, including Medicare, Social Security and Prescription Drugs, has reached $119.8 trillion. When will it end?