President Obama rammed his so-called stimulus bill through a Democratic Congress less than a month after taking office in 2009. According to the Congressional Budget Office, the American Recovery and Reinvestment Act (ARRA) will cost Americans $840 billion. Unfortunately, this massive sum has failed to buy Americans any respite from economic woe. It has done little more than bury Americans under yet more debt and lengthen lines at the unemployment office. The nation's jobless rate climbed to 9.2 percent last month, according to figures released Friday. We're headed in the wrong direction.
The federal government notched its 33rd straight month in the red in June, extending its record deficit streak to three times the previous low-water mark, according to preliminary estimates Friday from the Congressional Budget Office.
The demonstrably false party line being peddled by President Obama and the Democrats in the budget battle is that tax increases must be a large part of the deal because corporations and the rich don't pay their fair share.
To get federal finances in order, conventional wisdom says we must both cut spending and "enhance revenues" (i.e., increase taxes). But conventional wisdom is dead wrong. The Congressional Budget Office says so.
With signs multiplying that debt-reduction talks between the White House and Congress are at an impasse, Wall Street credit agencies are stepping up their warnings that even a temporary delay in making payment on the government's $14.3 trillion of debt will result in a significant cut in the nation's perfect credit rating.
While the debt-ceiling battle continues to rage in Washington, closed-door meetings and last-minute deadlines have become the hallmark of the debate. Congress is staring down an Aug. 2 deadline that would mark the first time the U.S. would not make good on its promise to pay the bills.
It might be time for another midnight ride by Paul Revere, this time warning "the creditors are coming."
It might be time for another midnight ride by Paul Revere, this time warning "the creditors are coming."
Federal Reserve Chairman Ben S. Bernanke's lower economic growth estimates for this year and next diminishes President Obama's already weakened prospects for a second term.
