This is exactly why all Americans should be gravely concerned about the current rates of government spending:
“Today’s report confirms that the so-called Social Security crisis exists in only one place — the minds of Republicans,” said Senate Democratic Leader Harry Reid of Nevada on March 23, 2005. “In reality, the program is on solid ground for decades to come.”
Yesterday, Social Security trustees said that will start paying out more in benefits than it collects in taxes in 2016, one year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner than predicted last year.
The trustees said Medicare was in even worse shape. They said that the trust fund for hospital expenses will pay out more in benefits than it collects this year and will be insolvent by 2017, two years earlier than the date projected in last year’s report.
Both of these programs are likely to be adding to the national debt before long.
President Obama has already added to the national debt with the $787 billion stimulus, the omnibus spending bill topping $400 billion, enormous “bailouts,” and budgets in the trillions.
He still wants to fix health care, education and the environment.
On Monday, the Office of Management and Budget said for the first time ever, the U.S. government is borrowing 50 cents of every dollar it spends.
This could even still go up.
Barack Obama and democrats will quadruple the U.S. deficit this year, based upon the current rate of spending and receipts.
The receipts of the U.S. government from taxes paid was down 15% in January 2009 compared to January 2008. In April, receipts were off a full 30%.
April 2009 was the first April since 1983 that the U.S. government spent more than it took in….
Meanwhile, U.S. government spending is way up: up fully $38 billion in April alone over April 2008.
The difference between receipts and money spent is the deficit and that could exceed $1.8 trillion this year; added to the U.S. burden of borrowed money and interest paid.
The massive budget deficit created by democrats this year represents a massive 12.9%of gross domestic product. President Obama expected the deficit level to be 12% of GDP this year. This puts the US above the UK deficit that runs more than 10% of GDP, and puts the US above troubled states Pakistan and Hungary.
As several commentators have said, the U.S. would not be given permission to join the EU with this much debt….
Makes one ask: if the January and February government economic predictions on debt and deficit are $600 billion too low by May 11: what else is wrong and how bad can it get?
All the budget and debt figures in the Obama plan are based upon assumptions and prediction which have already been proven to be way wrong….
Social Security and Medicare Finances Worsen; Likely Will Add To Nation’s Debt
Obama Debt, Budget Numbers Stagger Most (One Trillion = Million Million)
U.S. Government Borrowing 50 Cents on Every Dollar Spent; Interest Likely To Rise
America’s Ability To Borrow More Questioned, At Risk — Too Much Spending “Breaking the bank”?
From CNN Money
The government ran up a $21 billion budget shortfall last month, the first April deficit in 26 years, the Treasury Department said Tuesday.
The total deficit for the first seven months of the fiscal year hit $802 billion, compared to a deficit of $153 billion in the same period a year earlier, the government said in the monthly budget report.
“This is historic,” said Dan Clifton, head of policy research at Strategas Research Partners. “Our country has never seen something like this.”
From October – the beginning of the fiscal year – to April, total revenue declined 19%, Clifton said. That’s the largest drop in revenue and almost double the previous record, he said.
Notably, April is usually a good month for Uncle Sam because many taxpayers file their returns and send checks to the Treasury. But this year, tax receipts have fallen sharply because of the recession and the government’s response to it.
The downturn is a triple whammy to government revenue: fewer people are working and providing income taxdollars; corporation tax receipts are on the wane; and tax cuts aimed at juicing the economy reduce paycheck withholdings.
“It’s a perfect storm of every tax revenue source declining at once,” Clifton said.
At the same time, government is spending massive amounts to try to recapitalize the nation’s financial system and spur economic growth.
In March, the government added $191.6 billion to the deficit.
Spending: The total outlays for April were $287.1 billion, a decrease from $320.5 billion spent in March.
Spending is up 26% year-over-year, according to Clifton, who said the number is “astronomical. Even a fifth of that increase would have been a big deal.”
So far this fiscal year, the government has spent $2.06 trillion and expects to spend $3.94 trillion for the full year ending Sept. 30.
Total receipts for April were $266.2 billion, bringing the total amount that the government has taken in so far this year to $1.3 trillion.