What would you say if I told you that the Obama Administration is proposing in a budget that cuts out spending to the equivalent to getting a penny off of your Wendy’s value meal?
Let’s be clear: for an administration that has had to deal with the worst economy in decades, the Obama Administration has proven an uncanny ability to live in La-la Land when it comes time to make a budget.
I don’t say this to attack the Obama Administration on its handling of the economy. Indeed, that might be seen as a different issue. Rather, I point it out because it is significant in that budgeting is how the executive branch sets its priorities for the coming year. As yet, over the course of his tenure in the White House, the President has not had a budget survive through Congress, even when his party controlled both the Senate and House.
Further, it is widely accepted by economists that once national debt exceeds 90% of GDP (gross domestic product or the value of everything a country produces in a year), “annual economic growth tends to be about one percentage point lower.” The current GDP for the US is about$14.58 Trillion. The current national debt is at $15.087 Trillion, or about 103.45% of GDP. [cont…]