Budget Fact #8

Borrows Too Much

The Facts About The Democrats' Budget:

The Democrats' Budget Will Produce $9.3 Trillion In Total Deficits Over The Next 10 Years. "President Obama's budget proposals, if carried out, would produce a staggering $9.3 trillion in total deficits over the next decade, much more than the White House has predicted, the Congressional Budget Office said on Friday. The office's estimates of deficits in the fiscal years 2010 through 2019 'exceed those anticipated by the administration by $2.3 trillion.' The deficits under the Obama plan would be $4.9 trillion more than the projected deficits if there were no changes in current laws and policies – what the nonpartisan budget office calls its baseline assumption." (David Stout, "Much Bigger Deficits Seen In Budget Office Forecast,"The New York Times, 3/20/09)

CBO: The Democrats' Budget Is $2.3 Trillion More Than The Democrats Currently Project. "The office's estimates of deficits in the fiscal years 2010 through 2019 'exceed those anticipated by the administration by $2.3 trillion.'" (David Stout, "Much Bigger Deficits Seen In Budget Office Forecast," The New York Times, 3/20/09)

CBO: The Democrats' Budget Will Grow The Nation's Debt To 82% Of The Overall Economy By 2019. "By the CBO's estimate, for example, the nation's debt would grow to 82 percent of the overall economy by 2019 under Obama's policies, compared with a pre-recession average of 40 percent." (Lori Montgonery, "U.S. Federal Deficit Soars Past Previous Estimates," The Washington Post, 3/20/09)

The CBO Estimates That Deficits "Would Exceed 4 Percent Of The Overall Economy Over The Next 10 Years" – A Level That Even The Democrats Acknowledge Is Unsustainable. "Although Obama would come close to meeting his goal of cutting in half the deficit he inherited by the end of his first term, the CBO predicts that deficits under his policies would exceed 4 percent of the overall economy over the next 10 years, a level White House budget director Peter R. Orszag yesterday acknowledged would 'not be sustainable.'" (Lori Montgomery, "Deficit Projected To Swell Beyond Earlier Estimates," The Washington Post, 3/21/09)

Even According To The Democrats' Projections, Their Budget Will Double The National Debt. Just based upon the Democrats' projections, their budget would at least double the national debt over the next eight years.

The Democrats' Budget Will Increase Your Families' Share Of The Debt.The current debt per capita exceeds $35,000. The Democrats' budget would more than double the national debt in only eight years, thus ballooning your share to at least $70,000.

The Democrats' Budget Will Not Halve The Deficit. Despite the President's pledge to cut the deficit by the end of his first term, the Democrats' budget projects that deficits will start increasing immediately after that. Thus, the Democrats' budget only halves the deficit for one year before it starts going back up again.

Despite Speaker Pelosi's Claim, Deficit Numbers Do Matter. Speaker Nancy Pelosi recently made clear that she isn't worried about the unprecedented deficits that will happen under the Democrats' budget. Despite new estimates that the Democrats' budget would cost as much as $2.3 trillion more, Speaker Pelosi believes their budget should not change. When asked if the budget will be modified based upon CBO numbers, Speaker Pelosi said,"Our priorities are the same. …You can't say we are going to do less because those numbers are pessimistic."

Posted by: Press Secretary