Obama acknowledges deficit spending “unsustainable”

Posted on May 17, 2009

1



In a stating-the-obvious moment, President Obama on Thursday said current levels of defict spending are “unsustainable” and warned of higher interest rates across the board as creditors become weary of buying American debt. This comes the same week that his administration revised upward by 5% the projected budget deficit for 2010 – the new number is $1.84 trillion.

To call the President’s warning “ironic” would be an understatement of the word. Despite this warning, Obama has as yet shown no proclivity to decrease the size of government or exercise fiscal restraint. Indeed, his warning was intended to highlight the supposed fiscal need to pass his health care plan, as though adding more government bureaucracy and spending will help the deficit any better. Whatever other reasons might exist for universal health care, I’m not buying debt reduction as one of them.

With this admission that this current level of deficit spending cannot be maintained, I’m looking to see if the President will start operating more conservatively when it comes to the budget and spending matters. I already know I’ll be disappointed, and I know we’ll see more infinitesimal budget cuts in one area to claim political points while the entire budget continues to grow. If his spending habits continue, there’s a good chance these words will bite Obama on the proverbial bum. In any case, it’s a recognition of an obvious truth – America can’t have its government spend its way back into prosperity.

Advertisements
Posted in: News, Politics