Nov 19 2009
Obama addresses deficit problem in the United States
…Thank you, Mr. President.
Some of us were beginning to think you had forgotten about the issue completely….
Somewhat appropriately, Obama’s harshest warning about the U.S. budget deficit came during his recent nine-day trip to Asia. In an interview with Fox News, Obama said his administration was facing a “delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.”
“It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession,” said Obama.
Obama also said he plans to hold a jobs forum with business leaders and financial experts in December to discuss ways to turn around the 10.2% unemployment. After taking office, Obama said, the focus of the administration was avoiding the Great Depression.
“Our first job was to get the economy to recover. And we’re now seeing that,” said Obama. “We’ve seen economic growth (in the third quarter). We anticipate economic growth next quarter as well. I always said the job growth would lag behind economic growth. The question now is how can we accelerate it.”
In an interview with NBC Obama said there was a whole “range of ideas” to give companies an incentive to start hiring again. Two ideas he did note were searching for more export opportunities and possible tax provisions that would encourage businesses to hire “sooner rather than sitting on the sidelines.”
I, like a lot of Americans, have been pretty discouraged by the amount of spending in the Obama administration so far. I don’t even blame Obama completely since it really does take over a thousand pages of legislation to get the Democrats in Congress to reach a consensus on big issues.
Plus, this guy went to Harvard. He’s a smart man. He knows that we can’t keep spending at these levels… right? Right???
Because we really can’t. For the United States to continue to keep borrowing more money at this point is downright irresponsible.
Put it like this, courtesy of China, Japan and a host of other countries, the United States was given an international credit card. A credit card with no spending limit. Then, with all of the excitement of a fifteen year old girl at the Mall of America, we went crazy with it. We racked up a lot of charges and… now we owe almost $12 trillon.
$12,000,000,000,000.
The forecast doesn’t get all that greater over the next few years either. According to the CBO, over half of the $9 trillion in debt that the U.S. is expected to build up over the next decade will be in interest rates alone (see chart).
States across the country are going bankrupt, California is looking at a $21 billion budget gap over the next year and a half. For a more comprehensive look at California’s situation visit NWunderlich, who has been documenting the state’s budget woes for a while now.
At some point our lawmakers need to come together and address this issue. It will take making some tough choices, unpopular choices like spending cuts and tax raises. Measures do need to be taken though.
If not, then President Obama is correct, we will experience a great deal of economic turmoil. The decades of borrowing are adding up, and if we don’t work to correct this soon it may be too late. It’s essential that we move forward with a streamlined and efficient government, one that is in control of its spending.
Sources:
http://www.foxbusiness.com/story/markets/industries/government/update–obama-debt-fuel-double-dip-recession/?loomia_ow=t0:s0:a16:g4:r4:c0.000000:b28934020:z10
http://en.wikipedia.org/wiki/United_States_public_debt
http://news.yahoo.com/s/ap/20091118/ap_on_bi_ge/us_california_budget;_ylt=AjVjPu2jpQ9f4C16RAxoY239xg8F;_ylu=X3oDMTJuZ3QzZjFjBGFzc2V0A2FwLzIwMDkxMTE4L3VzX2NhbGlmb3JuaWFfYnVkZ2V0BGNwb3MDMwRwb3MDMwRzZWMDeW5fdG9wX3N0b3JpZXMEc2xrA2ZvcmVjYXN0Y2FsaQ–
http://money.cnn.com/2009/11/19/news/economy/debt_interest/








