Economy

The Deficit Shrinks Again Under President Obama

According to the Congressional Budget Office (CBO), the supposed out of control spending of the Obama Administration is actually in control and will shrink another $200 billion in 2012.

The Congressional Budget Office said yesterday it expects this year’s gap between spending and revenue to total $1.1 trillion, down from last year’s $1.3 trillion. It attributed the decline to stronger tax revenue and the smallest increase in spending in years.

Read that again. The deficit has decreased by another $200 billion under the uber-socialist President Obama.

The CBO report isn't all roses, and it concedes that the automatic spending cuts that will take effect next year unless congress acts may increase unemployment, however it also indicates that allowing the Bush Tax Cuts to expire may be the best thing since sliced bread.

It seems likely to me the automatic triggers will end up being postponed by the current congress and then immediately swept under the rug by the next congress.

Why? Because the Republicans love making the economy look worse before an election, but after the election is over their primary concern will be stopping the automatic cuts coming to the Pentagon. Some Republicans, including John McCain, have already expressed their wish to see the automatic triggers go away if it means the Pentagon will be spared.

As far as the president is concerned, I doubt he would try to get in the way of ending the automatic triggers. They've already served their purpose, politically speaking.