A Grim Outlook. Spending and The National Debt.

The country is buzzing over President Obama's recent budget proposals. In an address outside of a Baltimore County Middle School, Obama noted that “even as we cut out things that we can afford to do without, we have a responsibility to invest in those areas that will have the biggest impact in our future. And that’s especially true when it comes to education.” This certainly doesn't sound like the language of cuts amidst a heated political environment with towering deficits and exploding spending. In fact, Obama proposed an increase in spending for the Department of Education. Since President Obama took office, discretionary spending has skyrocketed by 16 percent and the national debt has ballooned by 43 percent. Yet over that same period nearly 3.5 million jobs have been lost. Certainly President Obama cannot be blamed for the recession he walked into. However, at this point he can and should be blamed for his dismal response. It seems we have taken a serious problem and compounded it ten fold. The American People spoke loud and clear with an overt repudiation of current policies in the 2010 mid-term elections. The message is simple. Reign in Washington runaway spending and manage the debt crisis. Is the current Administration offering anything in terms of serious cuts? Well, that depends on whom you ask. The White House claims its FY 2012 Budget will cut discretionary spending by 5%. In actuality, all they have really done is shift certain measures from discretionary spending to mandatory spending. When the curtain falls down on this budgetary gimmick, the proposal looks more like a spending increase than a cut. Entitlements are not even addressed. No one on Capital Hill seems prepared to deal with Entitlements. This type of bipartisan cowardly behavior, fueled by special interest and reelection worries, is sending the country on a fast track to economic disaster. The shocking truth is in the numbers. By the end of the next fiscal year, White House projections have our national debt topping the $15 Trillion mark, reaching 102.6% of our Gross Domestic Product. What's even scarier is that our tax revenues, which have hovered at a recent average of about 18% of GDP, will be met by Entitlements in early 2050. In other words, Social Security, Medicare, and Medicaid will consume ALL of American tax revenues by 2052 or sooner.