Research Briefing

Obama’s Reckless Deficit Spending Is Leading The Nation Toward Fiscal Ruin

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1.                 Obama Is More Concerned With Getting Re-Elected Than Putting The Nation On The Right Fiscal Track

 2.                 Obama’s $821 Billion Stimulus Package Failed To Create Promised Jobs

 3.                 ObamaCare Will Add Billions More To The Deficits

 4.                 Obama Repeatedly Ducked Taking Action To Rein In Soaring Debt 

5.                  Americans Have Lost Faith In Obama’s Ability To Manage The Deficit 

6.                  The U.S. Will Run Trillion Dollar Deficits For Four Consecutive Years

 7.                 Since Obama Took Office, Over 3 Trillion Dollars Has Been Added To The National Debt

 8.                 The U.S. Is Currently Borrowing 43 Cents Of Every Dollar The Government Spends

 9.                 Obama’s Budget Plans Would Result In $46 Trillion In Spending Over Ten Years

 10.               Out-Of-Control Spending Is Now A National Security Threat

 1.     Obama Is More Concerned With Getting Re-Elected Than Putting The Nation On The Right Fiscal Track

Obama’s Political Advisors Say He Shouldn’t Get Dragged Into “Every Single Political Skirmish.” “‘There is a very strong gravitational pull in this town to try to drag the president to every single political skirmish and news story,’ said White House communications director Dan Pfeiffer.”  (Jim Kuhnhenn, “On High-Profile Issues, Obama Keeps Low Profile,” The Associated Press, 3/14/11)

• “‘Every Man For Himself’ Attitude Of An Election Year” Has Arrived Earlier Than Normal As Obama “Has Left Much Of The Work” On The Budget To Congress.  “What’s political hay for the president and White House, after all, isn’t necessarily good for his party’s majority in the Senate. That’s one reason Obama has left much of the work of dealing with Republicans on spending cuts to party leaders in the House and Senate. …  The short-term result, say several Capitol Hill staffers, is that the ‘every man for himself’ attitude of an election year has arrived even sooner than expected. Senate Democrats wonder if or when the White House will take the reins in a budget fight that has several of their vulnerable colleagues in a vise.” (Shane D'Aprile. “Parting Ways: President's Path Is Diverging From Senate Democrats,” The Hill, 3/14/11)
• Obama Is Avoiding Social Security Reform Because His Political Team Says The Debate Could Be "Disastrous To His 2012 Reelection Hopes." 'Treasury Secretary Timothy Geithner, National Economic Council Director Gene Sperling and Sperling's deputy, Jason Furman -- leading figures in the president's economic team -- are pressing Obama to cut Social Security benefits if necessary, say sources familiar with their positions. But Obama's political team, led by David Axelrod, David Plouffe and Jim Messina, are urging the president to understand that backing benefit cuts could prove disastrous to his 2012 reelection hopes, sources say." (Alexander Bolton, "Social Security Reform Splits White House Political, Economic Teams," The Hill, 3/15/11)

2.     Obama’s $821 Billion Stimulus Package Failed To Create Promised Jobs

CBO Now Says The Cost Of Obama’s Stimulus Is $821 Billion. “CBO now estimates that the total impact over the 2009–2019 period will amount to $821 billion.” (Congressional Budget Office, “Estimated Impact Of The American Recovery And Reinvestment Act On  Employment And Economic Output From October 2010 Through December 2010,” 2/11, p. 1)

Since The Stimulus Was Passed, The U.S. Has Lost 2.1 Million Jobs. (U.S. Bureau of Labor Statistics, www.bls.gov, Accessed: 4/1/11)

Obama Promised That His Stimulus Plan Would Create Or Save 3.5 Million Jobs Over Two Years. Obama: “Now, what makes this recovery plan so important is not just that it will create or save 3.5 million jobs over the next two years ...” (President Barack Obama, Remarks At The Signing Of The American Recovery And Reinvestment Act, Press Release, Denver, CO, 2/17/09)

The National Unemployment Rate Is 8.8 Percent. (U.S. Bureau of Labor Statistics, www.bls.gov, Accessed: 4/1/11)

• The Real Unemployment Rate, Which Includes Those Who Are Forced To Work Part Time Because They Cannot Find Full Time Work, Is 15.7 Percent.  (U.S. Bureau of Labor Statistics, www.bls.gov, Accessed: 4/4/11)

Obama Promised Unemployment Would Not Rise Above 8 Percent With The Stimulus. (Christina Romer and Jared Bernstein, "The Job Impact Of The American Recovery And Reinvestment Plan," 1/9/09)

3.     ObamaCare Will Add Billions More To The Deficits

Former CBO Director Douglas Holtz-Eakin: Without “Gimmicks And Budgetary Games,” The Health Care Reform Legislation Increases Deficits By $562 Billion. “In reality, if you strip out all the gimmicks and budgetary games and rework the calculus, a wholly different picture emerges: The health care reform legislation would raise, not lower, federal deficits, by $562 billion.” (Douglas Holtz-Eakin, Op-Ed, “The Real Arithmetic Of Health Care Reform,” The New York Times, 3/21/10)

• Which Includes $114 Billion To Implement ObamaCare. “Even worse, some costs are left out entirely. To operate the new programs over the first 10 years, future Congresses would need to vote for $114 billion in additional annual spending. But this so-called discretionary spending is excluded from the Congressional Budget Office’s tabulation.” (Douglas Holtz-Eakin, Op-Ed, “The Real Arithmetic Of Health Care Reform,” The New York Times, 3/21/10)
• Even Sen. Max Baucus (D-MT) Admits Budget Gimmick Hides True Cost Of Bill, Which Could Be As Much As $2.5 Trillion. Sen. Max Baucus (D-MT): “Just for a second -- health care reform, whether you use a ten-year number or when you start in 2010 or start in 2014, wherever you start at, so it is still either $1 trillion or it’s $2.5 trillion, depending on where you start...” (Sen. Max Baucus, Floor Remarks, 12/2/09)

4.     Obama Has Repeatedly Ducked Taking Action To Rein In Soaring Debt

Last Year, Rather Than Address Spiraling Deficits And Insolvent Entitlements, President Obama “Punted The Problem” To A Fiscal Commission. “Republicans say that includes Obama, who declined to offer a plan for fiscal solvency in the budget blueprint he released this month. Instead, with congressional Democrats due to face voters in November, Obama punted the problem to the bipartisan panel, formally known as the National Commission on Fiscal Responsibility and Reform, and ordered it to deliver a solution by Dec. 1, well after the fall elections.” (Lori Montgomery, “GOP Leaders Agree To Panel On Federal Deficit,” The Washington Post, 2/19/10)

This Year, Obama Punted Again In His 2012 Budget, Ignoring The Results Of The Fiscal Commission And Failing To Propose Any Major Deficit Solutions. "With the budget he is to unveil Monday, President Obama has not opted for the bold, comprehensive approach to reining in the fast-growing federal debt that his own fiscal commission has said is needed, now. That decision partly reflects Mr. Obama's characteristic caution, but also a White House calculation: that 'now' is too soon for the nation's political system."  (Jackie Calmes, "A Cautious Approach Seeking Bipartisan Appeal," The New York Times, 2/13/11)

Senate Budget Chairman Kent Conrad (D-ND) Said His Committee May Have To Take The Lead On Tackling Debt Since Obama Is Not Stepping Up.  “Senate Budget Committee Chairman Kent Conrad (D-N.D.) said Thursday that his panel might have to take the lead in solving the nation’s long-term budget problems, implicitly criticizing President Obama for failing to do so.  Conrad's comment that solutions ‘may fall to this committee’ came shortly after Sen. Jeff Sessions (Ala.), the ranking Republican on the Budget panel, ripped President Obama’s State of the Union speech for failing to tackle the nation’s budget problems.”  (Erik Wasson, “Dems, GOP Suggest Obama Is Failing To Lead In Budget Crisis,” The Hill’s “On The Money Blog,” Blog,  1/27/11)

5.     Americans Have Lost Faith In Obama’s Ability To Manage The Deficit

64 Percent Of Americans Disapprove Of Obama’s Handling Of The Budget Deficit. (Quinnipiac, 2069 RV, MoE 2.2%, 3/22-28/11)

6.     The U.S. Will Run Trillion Dollar Deficits For Four Consecutive Years

The Deficit In 2011 Is Slated To Reach A Historically High $1.65 Trillion. (Fiscal Year 2012 Budget Of The U.S. Government" Office Of Management And Budget, 2/14/11)

The FY 2010 Deficit Was $1.29 Trillion.  (Congressional Budget Office, “Monthly Budget Review For Fiscal Year 2010,” 10/7/10)

Obama Rang Up Record-Setting $1.42 Trillion Deficit In 1^st Year In Office, Nearly Triple The Previous Record. (David Jackson, "Obama Team Makes It Official, Budget Deficit Hits Record. By A Lot," USA Today's "The Oval" Blog, 10/16/09)

The Deficit Is Slated To Be $1.1 Trillion In FY 2012.  (Fiscal Year 2012 Budget Of The U.S. Government" Office Of Management And Budget, 2/14/11)

“The Annual Deficit Would Recede To $1.1 Trillion Next Year, As Obama's Latest Policies Began To Take Effect - The Fourth Straight Year Of Trillion-Dollar Deficits.”  (Lori Montgomery, “Obama Budget Projects Record $1.6 Trillion Deficit,” The Washington Post, 2/14/11) 

 7.     Since Obama Took Office, Over 3 Trillion Dollars Has Been Added To The National Debt

The Debt Has Increased By $3.5 Trillion On Obama’s Watch. “Just as President Obama signed and sent his annual Economic Report to Congress, the Treasury Department posted numbers that show the national debt has increased $3.5 trillion so far on Mr. Obama's watch.” (Mark Knoller, “Debt Has Grown $3.5 Trillion On Obama’s Watch,” CBS News, 2/23/11)

“Mr. Obama’s Budget Projects That 2011 Will See The Biggest One-Year Debt Jump In History, Or Nearly $2 Trillion, To Reach $15.476 Trillion By Sept. 30, The End Of The Fiscal Year. That Would Be 102.6 Percent Of GDP — The First Time Since World War Ii That Dubious Figure Has Been Reached.”  (Stephen Dinan, “Debt Now Equals Total U.S. Economy,” The Washington Times, 2/14/11)

In 2021, Gross Debt Will Total $26.3 Trillion, Equaling 107 Percent Of GDP.   (Fiscal Year 2012 Budget Of The U.S. Government" Office Of Management And Budget, 2/14/11)

8.     The U.S. Is Currently Borrowing 43 Cents Of Every Dollar The Government Spends

The United States Will Need To Borrow 43 Cents For Every Dollar It Spends In FY2011. (Office Of Management & Budget, “FY2012 Budget Of The U.S. Government – Table S-1,” WhiteHouse.gov, 2/14/11)

• The United States Will Borrow Nearly $5 Billion A Day This Fiscal Year To Fund Obama’s Binge Spending. (Office Of Management & Budget, “FY2012 Budget Of The U.S. Government – Table S-1,” WhiteHouse.gov, 2/14/11)

9.     Obama’s Budget Plans Would Result In $46 Trillion In Spending Over Ten Years

Obama Proposed A $3.71 Trillion Budget, Which Will Result In $46 Trillion In Spending Over Ten Years.  (“Preliminary Analysis of the President's Budget for 2012,” Congressional Budget Office, 3/18/11)

10. Out-Of-Control Spending Is A National Security Threat

Chairman Of The Joint Chiefs Of Staff Warned That The National Debt Is The Biggest Threat To National Security. “Adm. Mike Mullen also renewed his warning that the nation’s debt is the biggest threat to U.S. national security.” (Roxana Tiron, “Joint Chiefs Chairman Reiterates Security Threat Of High Debt,” The Hill, 6/24/10)

• Chairman Of The Joint Chiefs Of Staff Adm. Mike Mullen:  “Indeed, I believe that our debt is the greatest threat to our national security. If we as a country do not address our fiscal imbalances in the near-term, our national power will erode, and the costs to our ability to maintain and sustain influence could be great.”  (Admiral Mike Mullen, Chairman Of The Joint Chiefs Of Staff, Senate Armed Services Committee,” U.S. Senate, 2/17/11, p. 2)
• China Holds $1.15 Trillion Of The United States’ Foreign-Owned Debt, An Amount Equal To 7.8% Of Our National GDP. (“National Income And Products Account Table – Table 1.15 Gross Domestic Product,” Bureau Of Economic Analysis, Accessed 4/1/11; “Major Foreign Holders Of Treasury Securities,” Department Of Treasury, Accessed 4/1/11)