Seriously? This Took Analysis?

Actually, President Obama didn’t bring it back ... it’ has been steadily getting bigger since President Reagan left office. Even Obama’s Republican predecessor wasn’t exactly frugal.

Bush Bailout near $3 trillion (Bush 2009 budget is $3.1 trillion budget plan that will leave deficits of more than $400 billion this year and next)

Obama/Reid/Pelosi near $8 trillion

Obama budget for 2010 projects $3.55 trillion with and an eye-popping $1.75 trillion deficit for the 2009 fiscal year is projected in Obama's first budget (with almost $1 Trillion in New Taxes Over Next 10 yrs, Starting in 2011 - Tax increases -- The budget will impose the Clinton-era tax rates of 36 percent and 39.6 percent for couples earning more than $250,000 and individuals earning more than $200,000. (Current policy imposes a 33 percent rate on income from $200,000 to $357,000, and a 35 percent rate above $357,000. Those rates would jump to 36 percent and 39.6 percent, respectively). And capital gains tax rates to 20 percent, up from 15 percent.)

FDR total expenditures for 1934 to 1936 came to $24 billion. FDR's deficits in the first two years of his administration came to $7.5 billion.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Reuters Analysis: Obama brings back era of big government
http://uk.reuters.com/article/usPoliticsNews/idUKTRE51P73W20090226

February 26, 2009 | By Steve Holland - Analysis

 

WASHINGTON (Reuters) - Bill Clinton declared more than a decade ago "the era of big government is over." With his new budget, President Barack Obama has brought it back.

Obama's $3.55 trillion budget proposal represents a gamble that Americans are ready for the sort of change they embraced by electing him in November, including a tax increase on Americans making more than $250,000 a year.

He proposes expansion of spending on the U.S. healthcare system, on greater energy independence and on education, hoping Americans weary of paying for a raft of expensive bailouts for banks and the car industry will go along.

"What I won't do is sacrifice investments that will make America stronger, more competitive and more prosperous in the 21st century -- investments that have been neglected for too long," Obama said in rolling out his plan on Thursday.

The tax increase on Americans making more than $250,000 will help pay for a healthcare overhaul that has yet to be formulated.

Some experts worry this provision will have the unintended consequence of adding to the tax burden of small businesses, causing them to lay off workers or stop hiring.

"The taxing aspect of this is worse than Robin Hood," said economist Peter Morici, a University of Maryland professor. "He's resurrecting class warfare for political gain."

"POLITICAL JUDGMENT"

Obama's first budget was emblematic of a politician who, when he announced his run for the presidency two years ago, had rejected the conventional wisdom that, having little experience in national politics, he was moving too fast and should wait his turn.

"This is a matter of political judgment, not political science," said William Galston, a Brookings Institution economist who worked in the Clinton White House. "My judgment is that his reach will exceed his grasp. But I could easily be wrong about that."

His budget is an exercise in the use of political capital earned by his impressive election victory in November and an approval rating this week of more than 60 percent.

AMID BIG PROBLEMS, BIG PLANS

Some experts have been taken aback by the scope of his plans and the speed with which he is moving on fulfilling campaign promises at a time when the country is deep in recession and expecting a $1.75 trillion budget deficit for fiscal 2009.

"Given the economic catastrophe that we face, to go right into the teeth of that hurricane and plan for some ambitious expansion of government that goes beyond the triage element is bold to say the least," said Norman Ornstein, a political expert at the American Enterprise Institute.

Former Republican Senator Trent Lott said on MSNBC that presidents "tend to overplay their hand" in their first two years.

"I'm assuming this is going to find rough sailing in the Congress and I think rightly so," Lott said.

On Capitol Hill, Democrats in charge of both houses of Congress were generally pleased and eager to turn U.S. budget policy away from the years of Republican President George W. Bush. They had accused Bush of neglecting their spending priorities while cutting taxes.

"This is nothing short of a sober, honest assessment of where our country stands and a tough, realistic plan to get our budget in line with our priorities," said Senator John Kerry, the Democrats' 2004 candidate for president.

Morici said he feared Obama's policies could make matters worse.

"We have learned from hard experience that big government only begets big government and high unemployment," he said. "We have 1970s' solutions for new-age problems, and it's just not going to work. People are going to be happy to get some free healthcare for a while, then it's all going to end in tears."

Josie06 Josie06
56-60, F
7 Responses Feb 26, 2009

What you say is true. Anymore there is no difference between political parties. One, the Dems, just spend more than the other, the Pubbies.

What really sucks for our country is when the Republicans had control of both the White House And the U.S. Congress for 6 years in a row, they chose to run up bigger and bigger deficits............and they came in on the heels of a Democratic Administration that balanced the budget. I was told, when I was a child, that the Republican Party was generally fiscally conservative, and that was one of their strengths. I guess it was like that once upon a time...............until Bush and friends bankrupted us. Obama has to fix the mess now.................and the Republicans are NOW upset about deficits? Few years too late idiots

And do not forget the last line......That was the interest....Now go and get more for the princapul

Did you see obama's new streamlined tax form?<br />
<br />
Line #1 How much did you make?<br />
<br />
Line #2 Send it in!<br />
<br />
Got to give him credit for his simplicity.

It's also the first time, in recent history, that Iraq/Afghanistan/ etc is included in the main budget and not the supplemental. However, we know there will be a supplemental too.

Someone on the news tonight said that all presidential budgets have been an illusion but this is the first time in history a president's budget has been a fantasy

Even with a 100% tax and a total defunding of the military and selected other agencies ... they could not pay for the entitlements that are in place and are coming on-line.<br />
<br />
Thanks for the article CPAGuy. Very good.<br />
<br />
It's scary as we now have created a debtors prison in the US for out children and grandchildren. Words have meaning and we (the electorate) chose to ignore the meaning for the warn fuzzy good feelings. However i don't believe that folks will truly like this change that will beset us.