Excerpts from USA Today
February 14, 2012
“The best test of a budget proposal these days is whether it reins in the national debt, which is projected to equal a troubling 74% of gross domestic product this year. The last time the publicly held debt was that high as a percentage of the economy was in 1950, when the nation was still paying off the stupendous amount of money it had to borrow to fight and win World War II.
“The election-year budget President Obama sent to Congress…fails that test…Obama's budget has a lot of deficit reduction…But the plan would still add $6.7 trillion in deficits over the next decade, with the debt-to-GDP ratio creeping up to about 77% through 2022…long-term figures buried deep inside the budget show the debt would shoot up again after 2022 and just keep going, driven by an aging population and the escalating cost of Social Security and health care…
“Credible proposals from Obama's own deficit-reduction commission and by the Bipartisan Policy Center in 2010 both aimed at reducing the debt to 60% of GDP and keeping it headed down. Obama's plan does not even begin to do that. Nor…does it fulfill his 2009 promise to halve the deficit by the end of his first term.
“The reason the president's budget doesn't fix the longer-term problem is that for all its spending cuts and revenue increases, it relies on gimmicks and avoids some problems instead of tackling them.
“The administration continues to pretend that Social Security needs no fixes because it doesn't add to the budget deficit…The administration's own numbers…show that the program is in the red and will drain the Treasury of half a trillion dollars from 2011 to 2017…
“This is the president's fourth year in office. If he had been aggressive about long-term debt in years one through three…the nation might not be where it is today…”\
Click Here To Read The Full Editorial: http://usat.ly/AjF2M9
Budget and Spending National Debt