The Final Minority Report

Because Even Minorities Oppose Liberalism & Statism

Obama Promised to Lower Taxes, Will Raise Them Instead

Vindication of how dumb voters are and how dumber our politicians are when it comes to slogans and promises:

Only five months after Inauguration Day, the focus of Washington’s economic and domestic policy is already shifting. This reflects the emergence of much larger budget deficits than anyone expected. Indeed, federal deficits may average a stunning $1 trillion annually over the next 10 years. This worsened outlook is stirring unease on Main Street and beginning to reorder priorities for President Barack Obama and the Democratic congressional leadership. By 2010, reducing the deficit will become their primary focus.

Why has the deficit outlook changed? Two main reasons: The burst of spending in recent years and the growing likelihood of a weak economic recovery. The latter would mean considerably lower federal revenues, the compiling of more interest on our growing debt, and thus higher deficits. Yes, the President’s Council of Economic Advisors is still forecasting a traditional cyclical recovery — i.e., real growth of 3.2% next year and 4% in 2011. But the latest data suggests that we’re on a much slower path. Probably along the lines of the most recent Goldman Sachs and International Monetary Fund forecasts, whose growth rates average about 2% for 2010-2011.

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06/30/2009 - Posted by | Free Market Economics, Government Debt, Liberal Business, Obama - Domestic Policy, Obama Budget, Redistribution of Wealth, socialized medicine, tax cheats, Useful Idiots

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