Obama is Cutting the Deficit by Spending More

President Bush, with the help of Congress, ran up gigantic yearly deficits in the the hundreds of billions of dollars.  President Obama on the other hand, has managed to dwarf Bush’s record deficits.  Despite the good game Obama has been talking the last few days about cutting the deficit and being fiscally responsible, his new budget for the 2011 fiscal year still contains another record deficit.  I know what every liberal is thinking, “Yes, this new budget still has a big deficit, but Obama said he cut out 20 billion dollars.  At least he is moving in the right direction.”  It’s true, Obama claims he cut 20 billion out of the new federal budget.  But if this budget actually increases the total amount of spending, is it truthful to say that 20 billion has been cut?  Being truthful has not been one of Obama’s strong points so far in his presidency.

This new budget will total 3.8 trillion, which is 250 billion more than last years 3.55 trillion dollar budget.  Obama claims to have cut 20 billion, but he is actually raising the amount of government spending by 250 billion.  How is this being fiscally responsible?  How is this cutting the deficit?  If I told someone that I was going to get my finances under control by cutting back on the amount of money I’m spending in one area of my budget, but then increased the amount I’m spending in another area, am I really cutting anything?  Of course not!

It goes without saying that this budget has a huge deficit that will have to be payed for by borrowing more money from China, firing up the printing presses, and raising taxes.

According to the NY Post,

As written, the spending plan’s $1.56 trillion in red ink surpasses last year’s then-record $1.41 trillion gap

Obama isn’t cutting the deficit like he claimes, he is adding to it with this new budget.  More government spending, higher deficits, more money borrowed from China, inflation, and higher taxes.  Is this the hope and change all the Obama supporters voted for?

We need smaller government, lower taxes, and a return to free market principles.  FDR’s policies during the Great Depression proved that new job bills and high deficits will not pull us out of an economic slump.  According to Burton Folsom, author of New Deal or Raw Deal?: How FDR’s Economic Legacy Has Damaged America, FDR’s own Secretary of the Treasury, Henry Morgenthau admitted the failure of FDR’s economic policy.  Morenthau said,

We are spending more money than we have ever spent before and it does not work. I want to see this country prosperous. I want to see people get a job. We have never made good on our promises. I say after eight years of this administration we have just as much unemployment as when we started and an enormous debt to boot.”

Why is Obama doubling down on the same old policies that history has proven do not work?  Why is he not embracing policies that we know grow the economy like low taxes for everyone, capitalism, and smaller government?  The more money the government takes out of economy to pay for this huge budget, the less there is for businesses to expand and hire new workers.  Why is this so hard for liberals to understand?

Related posts:

1. Obama Considers a Spending Freeze
2. Obama’s Method of Job Creation
3. Another Day, Another Promise Broken
4. Obama Wins the Nobel Peace Prize. Another Similarity to Jimmy Carter!