Spending the Future: President’s Deficit-Filled Budget Threatens Job Growth | Speaker.gov

When President Obama called for more of the same failed “stimulus” spending in his State of the Union Address, he also noted that families have to sacrifice to “live within their means” and “they deserve a government that does the same.” Judging by his FY12 budget, the president was serious about continuing the job-crushing spending binge – but completely ignored the part about government living within its means. Here’s a look at what the president said versus what his budget would actually do:

What President Obama Said …

What President Obama’s Budget Does …

“[N]ow that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in. That is not sustainable.  Every day, families sacrifice to live within their means.  They deserve a government that does the same.” (Remarks by the President in State of Union Address, WhiteHouse.gov, 1/25/11)

At no point in the president’s 10-year projection would the U.S. government spend less than it's taking in.” (President Obama’s Budget and the Pending Budget Fight, ABC News, 2/14/11)

“In fact, the smallest projected deficit in Obama’s proposal — $607 billion in fiscal 2015 — would be larger, in inflation-adjusted dollars, than any deficit between 1940 and 2008.” (Obama’s budget would increase the debt by trillions, Atlanta Journal Constitution, 2/14/11)

“The White House projected Monday that the federal deficit would spike to $1.65 trillion in the current fiscal year, the largest dollar amount ever…” (White House Expects Deficit to Spike to $1.65 Trillion, Wall Street Journal, 2/14/11)

“The White House pledge to 'pay down these debts' is beyond absurd. The expected deficit this year alone — $1.6 trillion — is greater than all the 'deficit cuts' Obama has in 10 years.” (Obama's Gutless Budget Proposal, Investor's Business Daily, 2/15/11)

“His plan calls for annual deficits - and therefore annual borrowing ... The national debt would then level off at about 76 percent of economy, nearly double the debt burden the nation carried before the recent recession.” (Obama budget projects record $1.6 trillion deficit, Washington Post, 2/14/11)

“The budget would add $8.7 trillion of new spending — and $7.2 trillion to the federal debt — over the next 10 years.” (Obama budget still falls short, Denver Post, 2/15/11)

So what's another few trillion in debt when we're already $14 trillion in the hole, you ask? The Associated Press explains how recklessly piling more debt onto the backs of our kids and grandkids threatens our economy and makes it harder to create new jobs:

“The danger is that a persistently large gap in the budget could threaten the economy. Investors would see lending their money to the U.S. as riskier. So they'd demand higher returns to do it. Or they'd simply put their cash elsewhere. Interest rates on mortgages and other debt would rise as a result.

“And if borrowing turned more expensive, people and businesses might scale back their spending. That would weaken an economy still struggling to lower unemployment, revive real estate prices and restore corporate and consumer confidence.”

National Review called it “wishful thinking” to “assert that our nation can continue to pile more than a trillion dollars a year onto its debt without driving up interest rates, depressing the dollar, and smothering the productive economy.”

In a statement sent by House Speaker John Boehner (R-OH) to the White House this weekend, a group of 150 economists said “immediate action is needed to rein in federal spending” in order to create a better environment for job creation. House Budget Committee Chairman Paul Ryan (R-WI) has also made the “pro-growth case for spending cuts,” arguing that, “Endless borrowing is not a strategy. Spending restraint must come first.”

The new House majority is taking action this week – voting on legislation to cut $100 billion in discretionary spending over the next seven months alone – in an effort to liberate our economy from the shackles of debt and uncertainty, and help create new jobs. And as Speaker Boehner told Laura Ingraham yesterday, “this is just the beginning”:

“Over the next several months you'll see us move ahead with other cuts in mandatory spending, and then you'll see our budget. And our budget will deal with the entitlement crisis that we're facing.”