The $1.5 trillion deficit: Whose fault is it?
The Congressional Budget Office says this year's federal spending plan will be a record $1.5 trillion in the red. Let the finger-pointing begin...
Just as President Obama is basking in the warm reception given his State of the Union address, the Congressional Budget Office (CBO) hit him with a cold dose of reality regarding the deficit. The government's spending watchdog says that this fiscal year's deficit will hit a record $1.48 trillion, a full $414 billion more than the August 2010 projection. The CBO's bleak forecast thrusts the government's debt problem back into the spotlight — and commentators wasted no time in deciding who, and what, to blame:
It's the tax cuts, dummy: The CBO itself says the $858 billion tax cut deal cooked up by Obama and the GOP is responsible for this rise in deficits, says Stephen Stromberg at The Washington Post, and it's time to be "honest about the costs of that spending." Next time the "Republicans defend unaffordable tax cuts," consider this: "Just the interest payments" on the tax cut deal will cost us $50 billion a year until 2021.
"It's official: The debt is ballooning. Now can we think clearly?"
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
No, it's profligate spending: The tax-cut extension has nothing to do with it, says Ed Morrissey at Hot Air. It's our out-of-control spending that's to blame. The federal budget has "increased 38 percent on an annual basis over the last four years," thanks to increases in the defense budget and "unsustainable entitlement structures." Alas, the Democrats "still haven't figured out the math."
"Deficit to hit new high in FY2011, says CBO"
It's spending on entitlements, specifically: "The real culprits on the spending side," says Jon Healey at the Los Angeles Times, are our burgeoning entitlements, particularly Medicare. The CBO says that keeping Medicare reimbursements at their current levels "would almost double the deficits over the coming decade." That's what we need to worry about.
"The CBO lays out the harsh reality"
What does it matter? Nothing will happen: Does it really matter what's to blame? asks Megan McArdle at The Atlantic. The real issue is that, "short of a near-death experience, no one is going to do anything about this problem." Democrats won't cut entitlements, and Republicans won't raise taxes. We need to develop a "credible plan" quickly, but "right now the only serious plan anyone seems to have is to put off making decisions."
"U.S. budget deficit to pass $1.5 trillion this year"
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Magazine interactive crossword - May 3, 2024
Puzzles and Quizzes Issue - May 3, 2024
By The Week US Published
-
Magazine solutions - May 3, 2024
Puzzles and Quizzes Issue - May 3, 2024
By The Week US Published
-
Magazine printables - May 3, 2024
Puzzles and Quizzes Issue - May 3, 2024
By The Week US Published
-
Arizona court reinstates 1864 abortion ban
Speed Read The law makes all abortions illegal in the state except to save the mother's life
By Rafi Schwartz, The Week US Published
-
Trump, billions richer, is selling Bibles
Speed Read The former president is hawking a $60 "God Bless the USA Bible"
By Peter Weber, The Week US Published
-
The debate about Biden's age and mental fitness
In Depth Some critics argue Biden is too old to run again. Does the argument have merit?
By Grayson Quay Published
-
How would a second Trump presidency affect Britain?
Today's Big Question Re-election of Republican frontrunner could threaten UK security, warns former head of secret service
By Harriet Marsden, The Week UK Published
-
'Rwanda plan is less a deterrent and more a bluff'
Instant Opinion Opinion, comment and editorials of the day
By The Week UK Published
-
Henry Kissinger dies aged 100: a complicated legacy?
Talking Point Top US diplomat and Nobel Peace Prize winner remembered as both foreign policy genius and war criminal
By Harriet Marsden, The Week UK Last updated
-
Trump’s rhetoric: a shift to 'straight-up Nazi talk'
Why everyone's talking about Would-be president's sinister language is backed by an incendiary policy agenda, say commentators
By The Week UK Published
-
More covfefe: is the world ready for a second Donald Trump presidency?
Today's Big Question Republican's re-election would be a 'nightmare' scenario for Europe, Ukraine and the West
By Sorcha Bradley, The Week UK Published