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National Debt

The Second Largest Budget Deficit in U.S. History, the Same President

  • November 07, 2011

    This past month the Obama administration announced the official fiscal 2011budget deficit. This fiscal year-end ritual confirmed that it was the second biggest shortfall in our budget history. The official deficit for 2011, which ended Sept. 30, was $1.299 trillion. This was an increase from the $1.293 trillion deficit last year, but down from the $1.412 trillion in 2009. The 2009 number was the highest in history, largely due to President Obama’s failed stimulus plan.

    This latest announcement came as revenue for the fiscal year was $141 billion higher than in 2010. Spending was $145 billion above 2010. This makesclear that the problem facing our government’s ledger is not revenue (or tax) based, but spending. Every man woman and child in the country owes over $46,000 towards paying off the national debt. It’s time that our government begantaking a serious look at ways to get a hold on this out of control spending binge.

    Despite efforts by House Republicans to cut spending, the real issue isthat these spending cuts are over a 10 year period. Look back to the budgetdeal struck in April of this year which averted a government shutdown. Underthe bipartisan agreement, the proposed budget for the 2011 fiscal year wouldhave been $38.5 billion less than the 2010 fiscal year budget. The federal government spent nearly $3.5 trillion in 2010, so the cut is a little more than1 percent of total spending. Yet, here we come to find that we spent $145 billion more, not $38.5 billion less. This just shows that we must be more aggressive than nibbling around the edges for 1% percent cuts.

    However, the responsibility for this bloated budget also rests on the backs of President Obama and Senate Democrats. The President submitted a budget to Congress which took no real steps towards halting the trillion dollar budget deficits which have become common place in his Administration. Furthermore, the Senate hasn't even seen fit to pass a budget in the last 900 days. This means, House Republicans are in a tough spot as to how much they can cut. One arm of our government doesn't want to cut anything, and the other doesn't even want to have the conversation. The American people have demanded that our government take action in terms of getting our fiscal house in order - it's time to act.

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