Friday, October 16, 2009
Obama's Federal Deficit Reaches 1.42 Trillion Dollars
The federal deficit has ballooned to a all-time high 1.42 trillion dollars because the recession has caused a drop in revenue to the Federal Government. The Obama Administration has spent trillions of dollars trying to stimulate the economy and stabilize the banking system. The budget deficit has tripled over the last year since, President Obama has taken control of the federal government. The deficit is 10% of the economy which is the highest since World War Two. President Obama has pledged to reduce the deficit by passing new health care legislation and creating new jobs with his 787 billion dollar stimulus plan. The federal government has collected 2.10 trillion dollars in revenues, 16% drop from 2008. The lost revenue is reflected in federal income tax collections as Millions of Americans have lost there jobs or saw there wages cut by there employers. Government spending increased to 3.5 trillion dollars up 18% over the 2008 federal budget. The 700 billion dollar bailout of the banking system and 787 billion dollar stimulus bill that President Obama pushed through Congress drove the increase in the federal deficit. Under the Bush Administration the month of September 2008, the federal government had a surplus of 46 billion dollar. That is a sharp contrast to the Obama administration who had a total deficit of 45 billion dollars in the month of September of 2009. the White House Budget Director Peter Orszag said in a statement. The President recognize the need to put the nation back on a fiscally sustainable path. Finally, Peter Orszag need to go over to the Oval Office and tell President Obama to stop redistributing income and balance the Federal Budget. President Obama could care less about the federal deficit because he, will spend trillions of dollars to implement his socialist policies.