Half of triple is a 50% increase.
The administration estimates that the deficit for fiscal year 2009 will reach $1.75 trillion, or 12.3% of U.S. gross domestic product. That's a record in dollar terms and is the highest as a share of GDP since World War II.
There are several assumptions in the budget proposal that are highly unlikely. For example, GDP is only projected to drop by 1.2% this year, while is it probably more likely to drop 5-7% as consumer confidence is at record lows.
With a 5-7% drop in GDP, the actually budget will be around $2.4 trillion in the red, just for 2009.
The second assumption that is a little fuzzy is the $634 billion for health care reform, that is suppose to save $316 billion of the next 10 years. That does not sound like a good investment and why are we even thinking about tackling healthcare reform while we are in the largest global recession since the 1930’s? Here is an idea, why don’t we wait a year or two to get the economy out of this recession first and then tackle healthcare reform.
The third faulty assumption is the tax changes expected to extract billions from the rich because they are projected over the next 10 years. A lot can change in 10 years and most of these policies will probably not survive that long.
Taken together, this is a huge increase in government spending - which is the exact opposite of what we need right now.
The economy is a disaster and millions have already lost their jobs and their homes, yet the President is not planning to cut back on government spending to help the economy. On top of that the President has provisions to double the funding for foreign assistance. I'm all for giving money to help people in need, but we don't have any money to give. We have to double the money that we borrow from foreign nations so that we can give it back to them.
I don't usually criticize the President, but he is completely out of touch with Main Street and his economic advisors have gone completely mad.