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What does Barack Obama plan longterm? December 22, 2008

Posted by neoavatara in Economy, Politics.
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On a daily basis, the U.S. economic outlook darkens.  And on a virtually daily basis, the Obama team comes up with new ways to respond, generally spending more money.

After the Bush Administration has spent almost $1 Trillion during the past four months, 2008 looks to have a record deficit pushing the trillion dollar mark.  Barack Obama looks to quickly out distane that mark in 2009.  As of now, Obama’s proposals will cost in the range of $2 trillion more to the U.S. debt.

Now, some realism.  Barack Obama has very few choices in the short term.  What does a new president do in the face of one of the worst economic situations in a century?  You do what you have to do, and that is what the public expects.

The bigger problem comes later.  Most experts feel, that at worst, the recession will last through out 2009.  If so, the recovery will occur early in 2010.  Again, this is most economists worst case scenario.

As of today, December 22, 2008, the federal debt is around $10,611,000,000,000.  Yeah.  So the average debt per citizen today is around $34,755.98. So, we all agree this is very bad. So in 201o, as the economy picks up, we will be facing upwards of a $15 trillion debt.  Barack Obama is on pace to increase the debt at the fastest rate in history, and has yet to serve one day in office.

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Again, it is very hard to blame President-elect Obama.  That is not what I am trying to do.  My question is simply this:  what next?

In 2010, with a deficit of close to $2 trillion per  year, are the Democrats actually going to scale back federal spending?  Do any on us believe that Congressional Democrats will actually cut funding?  Because that will be the only long term solution.

I think Obama may actually consider cuts, because he has been shown to be a pragmatists.  I just have no faith that Congress will do the same.  I would hope that Obama would come out soon, and say that these funding requests are temporary and limited.  Otherwise, Obama’s administration could make the deficits of Reagan and Bush look like small change.

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