The Coming Train Wreck of Obama’s Economic Scheme

It’s one thing when a “right wingnut” says it, but when the Director of the Congressional Budget Office does, you know you’re in trouble:

Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run. Although great uncertainty surrounds long-term fiscal projections, rising costs for health care and the aging of the population will cause federal spending to increase rapidly under any plausible scenario for current law. Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits. Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy.

And I would add (and have added) to this that adding further taxation and regulation to the economy (via, for example, “cap and trade” and health care nationalisation) will only make things worse by making it more difficult to service the debt load.

It used to be that liberals always portrayed themselves as “compassionate” and “caring.”  Now the die hard secularists are in the driver’s seat and they’re “rational.”  Either way, Obama’s refusal to realistically address this problem will be his undoing and the undoing of his agenda for the United States.

But the next question is this: will the conservatives be prepared to make their move when it happens?  Or will they allow the opportunity to “finish the job,” i.e., become the predominant political force in the country on an enduring basis, slip through their fingers, as George W. Bush did?

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