Submitted By Todd on May 11th at 3:31pm
news for the economy?
A fresh estimate of the deficit showed it coming in at $1.84 trillion -- representing a massive 12.9 percent of gross domestic product -- in the current 2009 fiscal year that ends on September 30.I think it is good news.
A prior White House forecast released in February projected a deficit of $1.75 trillion, or 12.3 percent of GDP.While a quadrupling of our budget deficit is definitely bad for the country, the less well things are going over the short term, the less destructive the President will have the opportunity to be over the long term.
The report may add to the political challenges facing President Barack Obama as he seeks to push through a new healthcare plan and other big domestic initiatives.Universal health care and Cap & Tax are two new burdens on the economy that the President is determined to see to fruition. I'll take the bad news now if it means those two tragedies don't happen later.
Last week, he (the President) said he could wring $17 billion in savings from his budget by cutting waste in areas from weapons systems and education to the cleanup of abandoned mines.What, is he kidding?
But the cuts in 121 programs amounted to less than one-half of 1 percent of the total budget for 2010 and even the slim list of reductions is likely to face resistance in Congress.$17 billion isn't even milk money for the federal government.
The new White House figures bring the deficit estimates closer in line with the non-partisan Congressional Budget Office, which has forecast a $1.85 trillion deficit this year and $1.38 trillion in fiscal 2010.Bad news that just might help us dodge a Baracko Bullet.
A Senate Republican aide noted the budget reassessment added more than five times the amount to the deficit than the administration proposed saving with the $17 billion in cuts.