Issues That Matter

Deficit

The Obama administration adamantly denies how much their policies have soared the deficit. Here are the numbers broken down to prove they are adding to the deficit every minute.

• Myth
  The US debt is not very high
  
  Reality
  The current National Debt stands at $13.6 Trillion Dollars.
• Myth
  Government spending has not risen under Obama
  
  Reality
  Obama and the Democrats spent 21.4% in the two years he has been President.
• Myth
  Obama and the Democrats do not have a spending problem
  
  Reality
  If Obama continues his spending pattern, the projected federal debt will reach over $26 trillion.
• Myth
  There have been higher deficits besides the one under Obama
  
  Reality
  In Fiscal Year 2009, the government spent the highest amount in US History: $1.42 Trillion.  In Fiscal Year 2010, the government spent the Second Highest in US History, $1.29 Trillion.
• Myth
  The money the government spends for it’s projects is money that is paid for.  For example, Healthcare.
  
  Reality
  41 cents of every single dollar government spends is borrowed. The biggest owner is China, with $868.4 billion in ownership.
• Myth
  Obama administration has not spent very much money
  
  Reality12% jump in two years and is the highest percentage since after World War 2. The CBO also released it’s spending report for the Democrats which says the total amount of money the government spent this year was $3.45 trillion. The Democrats have increased spending by 21.4%.
• Myth
  The burden of overspending is on the shoulders of other major foreign countries including China, Japan, and the UK
  
  Reality
  China is the largest foreign owner of U.S. government debt with $868.4 billion in Treasuries, followed by Japan ($836.6 billion) and the U.K. ($448.4 billion).  It could be a sign of European pulling us underwater with them.  Take Greece for example: before the EU bought Greece, the euro fell against the dollar and when investors turned euros into dollars, they got extra from the exchange leaving Greece bankrupt.  In 2009, China decided it was going to invest in domestic stimulus efforts.  Since the U.S. Federal Reserve is buying long-term U.S. treasuries for $300 billion, more inflation and more money out of your pocket.
• Myth
  The US deficit will not affect GDP.
  
  Reality
  In 2012, GDP will be 100% of US deficit.
• Myth
  The deficit will not put a burden on future generations.
  
  Reality
  The debt for every taxpayer is currently at just over $43,000.  That’s more than what the average person makes in a year in a dwindling income economy.  Economists believe the resolution to this problem would be Americans staying in the work force longer which the recession has made more difficult. Older workers typically fare better than younger workers but this time around they have been hit equally as hard.
  Young people ages 16-24 have the highest unemployment rate topping at almost 20%.