What I think the Obama administration is failing to consider is that everyone has a credit limit- no one can borrow indefinitely. Sooner or later- and probably sooner in this case- lenders are going to be no longer interested in lending any more money.
Then it will be time to either cut back, raise taxes, or run the printing presses 24/7. The last option is the worst, but I fear that Obama doesn’t have the political courage to do either of the first two options.
Look at Social Security. Recipients deserve no cost of living increase this year because there was no change in the CPI. But Obama and the fools in Congress will borrow billions more to pay each beneficiary $ 250 whcih probably exceeds what a minor annual inflation adjustment would have been. And the dolts promoting “health care reform” are going to pay for it with future hundred billion dollar Medicare cuts?? They can’t even resist giving away an expensive benefit that the law they wrote tells them the seniors are not entitled to. These people are money drunk; they have not a clue of the true cost and value of things and are a family with a $ 50,000 annual income living on a $ 100,000 budget not for one year but as far as the eyes can see with plans for massive new spending.
Raise taxes? Raising taxes does nothing to increase the GPD, which cutting taxes would do. Increase the GPD would lead to an increase in tax revenues collected