Posted on 08/31/2009 8:18:37 AM PDT by Thebaddog
According to the Obama administration’s mid-session budget update, the federal government will have to borrow nearly 40 percent of its total expenditures in 2010, a level not seen since World War II.
The report, “Mid-Session Review, Budget of the U.S. Government, Fiscal Year 2010,” shows that 39.9 percent of all federal income will be borrowed, making borrowing the single largest share of revenue in 2010. The next largest component of federal revenue is the personal income tax, which accounts for only 27.3 percent of federal funds.
This is only slightly lower than in 2009, when the federal government borrowed 43.3 percent of the money it has spent so far. The 2009 fiscal years ends Aug. 31, 2009.
The 2010 figures are estimates, based on current policy proposals which have not all been enacted yet. However, all new spending proposals, including spending from initiatives such as health care reform and a proposed cap-and-trade program, would be added to the 2010 deficit.
The revised budget estimates mean that the government will be borrowing the largest share of federal spending since World War II, when the federal government borrowed 62 percent of the budget in 1943, at the war’s apex. Borrowing, however, dropped off quickly after the war, falling to 28 percent in 1946 – with the government running at a surplus by 1947.
That does not seem to be the case this time, because Obama administration projections show the borrowed share of the budget staying at Cold War levels until 2019, when government will borrow 17.3 percent of its budget.
Overall, the Obama administration forecasts spending to be higher than tax revenues, with spending projected to total $43 trillion from 2010 to 2019, borrowing 20 percent of it – or $9.05 trillion.
Office of Management and Budget logo This level of borrowing is unprecedented even during recessions. During the long recession of the 1970’s, federal borrowing never rose above 20 percent of total expenditures despite nearly a decade of sluggish economic growth, high inflation and an international oil crisis.
Debt as a share of the budget reached 15 percent during the 1987recession. Borrowing was generally high during much of the early Reagan administration, reaching a peak of 25 percent in 1983.
However, Obama’s borrowing is 10 times greater than Reagan’s, which was fueled largely by defense spending as America battled the Soviet Union for dominance in the Cold War.
Obama’s 2010 spending is almost entirely domestic, by contrast, with mandatory spending programs, such as the bank bailout and stimulus spending programs nearly equaling defense expenditures despite two ongoing wars.
In fact, defense spending, including the wars in Iraq and Afghanistan, account for 19 percent of federal spending while mandatory programs such as the bailout and the stimulus spending programs account for 18.9 percent.
Entitlement programs, by contrast, including Social Security, Medicare, and Medicaid account for 38.2 percent of total government spending.
Non-defense discretionary spending, which includes the rest of the federal government, accounts for 18.5 percent and interest payments on the current federal debt, valued at $11.7 trillion, accounted for 5.2 percent of spending.
Brian Riedel, budget analyst at the conservative Heritage Foundation, said that the historic levels of borrowing proposed by Obama are not likely to abate, due to what he said were anti-growth policies pursued by the president.
“Two-thirds of the budget was eliminated after World War II ended,” Riedel told CNSNews.com. “But that’s not going to happen now. The White House thinks growth is going to rebound pretty quickly … which I find unrealistic, given some of the anti-growth policies that are a part of the president’s budget.
“Tax increases, cap-and-trade, health care, all of these are going to harm the economy, and they’re going to reduce the growth rate long-term,” he added.
“The lower economic growth is – the lower tax revenues come in, and that means higher borrowing is needed to compensate,” said Riedel.
who wouldda thunk the gays would be the new brownshirts
I hate to break the bad news but most of the Brown Shirts in Hitler's time were, in fact, gay. These boys have one fierce temper when provoked...
THROW THE ENTIRE LOT OF THEM OUT!!!!!!!!!!!!!!!!!!!FREAKIN LUNATICS!!! ALL OF THEM!!!!
“Productive people are just going to “check out” of this society the best that they can. You’ll have a massive underground economy on a scale you’ve never seen before save for the Soviet Union.”
Yes, and then HE will show up, and force all, weak and powerful, poor and rich to have a mark..etc etc. in order to identify them and confiscare (yes) their income as taxes. Kinda like big government does now.
“We’ll become the “China of the west” working our butts of for what amounts to pennies a day compared to other currencies, and producing cheap junk- Government Motors cars etc. for the world.”
That appears to be our “leader’s” goal and for some time now.
...39.9 percent of all federal income will be borrowed, making borrowing the single largest share of revenue in 2010. The next largest component of federal revenue is the personal income tax, which accounts for only 27.3 percent of federal funds. This is only slightly lower than in 2009, when the federal government borrowed 43.3 percent of the money it has spent so far...
"39.9 per cent isn't 40 per cent, no matter how much you want to make it so, you right wing militant xenophobes!"
Then comes the repo man, aka war.
Most of the money spent goes to debt, war, and disease. Hardly anything ‘enhancing’. Obviously, incurring debt is not something debated on in an election unless your a Ron Paul or a secondary candidate. That’s because puppets don’t squeal or become a squeaky wheel. It’s always been a systematic venture for control since the establishment of The Fed, which is neither Federal nor a Reserve. It creates debt and then gets paid to do it, and has no regulators except the puppetmasters from above the gov’t. Do your elected spenders have to account for ‘credit scores’ and worry about mortgages?? Of course many past Presidents lamented this banking debt ‘system’ from early on through JFK. The only hope is to file bankruptcy with a new government and new system for divving up the money and having the people monitor the money. Actually that was what the Constitution had offered to have government control the money, not a special interest central bank with political crooks going along with it.
Yikes.
“Rope and Chains”
er ....
I mean ...
Hope and Change .....
Why borrow where you can earn and conserve?
...because he is an antichrist driving it.
Very interesting, April. I never put it together in a historical perspective like that before. thx
ping
But, but, I thought Obama made nice with the Muslim world. He went to Cairo and made that nice speech.
Plus, he’s apologized at various times about America’s alleged crimes. He’s said that we haven’t always lived up to our highest ideals. And he’s announced that America doesn’t torture. And his attorney general is going to prosecute CIA operatives. That’s got to prove to the Muslim world that we love them, right, right??????
After cap-and-tax, the Chinese will be the only ones who can burn it.
Here’s a story for you:
A cowboy named Bud was overseeing his herd in a remote mountainous pasture in California
when suddenly a brand-new BMW advanced toward him out of a cloud of dust.
The driver, a young man in a Brioni suit, Gucci shoes, RayBan sunglasses and YSL tie, leaned out the window and asked the cowboy, “If I tell you exactly how many cows and calves you have in your herd, Will you
give me a calf?”
Bud looks at the man, obviously a yuppie, then looks at his peacefully grazing herd and calmly answers, “Sure, Why not?”
The yuppie parks his car, whips out his Dell notebook computer, connects it to his Cingular RAZR V3 cell phone, and surfs to a NASA page on the Internet, where he calls up a GPS satellite to get an exact fix on his location which he then feeds to another NASA satellite that scans the area in an ultra-high-resolution photo..
The young man then opens the digital photo in Adobe Photoshop and exports it to an image processing facility in Hamburg , Germany .
Within seconds, he receives an email on his Palm Pilot that the image has been processed and the data stored. He then accesses an MS-SQL database through an ODBC connected Excel spreadsheet with email on his Blackberry and, after a few minutes, receives a response.
Finally, he prints out a full-color, 150-page report on his hi-tech, miniaturized HP LaserJet printer, turns to the cowboy and says, “You have exactly 1,586 cows and calves.”
“That’s right. Well, I guess you can take one of my calves,” says Bud.
He watches the young man select one of the animals and looks on with amusement as the young man stuffs it into the trunk of his car.
Then Bud says to the young man, “Hey, if I can tell you exactly what your business is, will you give me back my calf?”
The young man thinks about it for a second and then says, “Okay, why not?”
“You’re a Congressman for the U.S. Government”, says Bud.
“Wow! That’s correct,” says the yuppie, “but how did you guess that?”
“No guessing required.” answered the cowboy. “You showed up here even though nobody called you; you want to get paid for an answer I already knew, to a question I never asked. You used millions of dollars worth of equipment trying to show me how much smarter than me you are; and
you don’t know a thing about how working people make a living - or about cows, for that matter. This is a herd of sheep. ....
Now give me back my dog.
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