Barack Obama may not be able to make the economy grow, but he is having no trouble making the deficit explode.
The Congressional Budget Office projects the U.S deficit for 2009 to be $1,900,000,000,000 (or $1.9 Trillion). That is several hundred billion more than Mr. Obama’s own worst case scneario, and $700 billion more than CBO projections in January. Additionally, the CBO sees no end in sight. They project Trillion dollar deficits for the next decade. Overall, Mr. Obama’s policies will produce $9.3 trillion worth of red ink over 2010-2019. That’s $2.3 trillion worse than the White House predicted in its budget.
But that didn’t stop the President from defending his spending. “What we will not cut are investments that will lead to real growth and prosperity over the long term,” Obama said. “That’s why our budget makes a historic commitment to comprehensive health care reform. That’s why it enhances America’s competitiveness by reducing our dependence on foreign oil and building a clean energy economy.”
No surprise this raises the ire of Republicans, but even Democrats are becoming progressively worried. The Democrats now are starting to realize that the Stimulus bill, along with the various bailouts, is starting to cement the concept that this is Mr. Obama’s economy. You saw that on Thursday night, as Mr. Obama had to take responsibility for mistakes…we have heard the word, but we haven’t seen any action actually taking blame. And on Leno, the President had to try to explain the AIG mess…and tried to avoid blaming Mr. Bush, because they are starting to realize that blaming your predecessor has diminishing returns.
And of course, the 2010 elections seem much closer now. There is even a push within the party to start to frame the off year election as a referendum on the President. Why? That way, when they lose, they can avoid the blame. And the dissaray in the Democratic Party is growing. We saw that this week with the AIG mess, looking for someone to blame and having to look in the mirror. They have been able to blame others effectively up to this point, but the public will only accept that for so long. And now, we are seeing the turning of the tide.
You can see the full CBO analysis here.