Out of Control Spending!

According to the Congressional Budget Office (CBO) the federal deficit is shrinking faster than anyone anticipated is now 24 percent lower than previous projections.

If the current laws that govern federal taxes and spending do not change, the budget deficit will shrink this year to $642 billion, CBO estimates, the smallest shortfall since 2008. Relative to the size of the economy, the deficit this year—at 4.0 percent of gross domestic product (GDP)—will be less than half as large as the shortfall in 2009, which was 10.1 percent of GDP.

Because revenues, under current law, are projected to rise more rapidly than spending in the next two years, deficits in CBO’s baseline projections continue to shrink, falling to 2.1 percent of GDP by 2015. However, budget shortfalls are projected to increase later in the coming decade, reaching 3.5 percent of GDP in 2023, because of the pressures of an aging population, rising health care costs, an expansion of federal subsidies for health insurance, and growing interest payments on federal debt. By comparison, the deficit averaged 3.1 percent of GDP over the past 40 years and 2.4 percent in the 40 years before fiscal year 2008, when the most recent recession began.

This isn’t necessarily a good thing if you’re someone who is still out of a job or were recently the victim of sequestration, but like most other Republican fantasies, the idea that President Obama is an unprecedented, prolific spender is completely false.

Even if House Republican hadn’t forced the nation into sequestration, the deficit would be falling quicker than anticipated at this point in time.

  • bphoon

    I’d remind any so-called “deficit hawk” within earshot that this is roughly half the deficit President Obama inherited from President Bush. In fact, if Bush had put the cost of the wars in Iraq and Afghanistan in the budget–where they belonged since at least 2002 (in the case of Afghanistan) and 2004 (in the case of Iraq)–this $642 billion deficit is roughly what he had before the Great Recession.

  • D_C_Wilson

    Bah! We all know math has a liberal bias. I’m sure the unskewed polls guy is working hard to show us what the real numbers are.

  • KABoink_after_wingnut_hacker

    If it wasn’t for blatant lies and outrageous distortions republicans and their media machine would have nothing to say at all.

  • GrafZeppelin127

    [T]he idea that President Obama is an unprecedented, prolific spender is completely false.

    Of course it’s false. It’s always been false. There’s never been a shred of truth to it. They’ve been accusing him of being an “unprecedented, prolific spender” since 12:01 p.m. on January 20, 2009. It’s never been true.

    • Lady Willpower

      Pretty much the only thing Obama ever even spent money on was the Stimulus (to help out all the people who’d been devastated by Bush’s economic policies) and paying for wars (that Bush put on credit card). Republicans can’t even point to actual spending by Obama, they just keep repeating Sean Hannity talking points about 12 trillion* in debt.

      *this number can vary anywhere from 6 trillion to 24 trillion, depending on the time of day.