by John Hawkins | January 23, 2009 7:08 am
“This week’s Congressional Budget Office (CBO) report is the latest addition to a voluminous body of evidence that government spending is a poor way to jump-start the economy. That’s bad news for the $825 billion economic stimulus package that President Barack Obama, Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi insists is desperately needed right now. But, CBO found that only $136 billion – less than half of the $355 billion House leaders plan to allocate to infrastructure and other discretionary programs – would even be spent by 2010. This raises obvious questions about the wisdom of a multi-billion dollar “stimulus” package that will provide precious little stimulus – except for Washington lobbyists and bureaucrats – until well after the current recession has become history.
Even without the record-setting stimulus package, the CBO says the federal deficit for the current fiscal year will hit an unprecedented $1.2 trillion – a truly staggering sum all by itself. But it gets worse. The Heritage Foundation calculates that passing the stimulus bill will increase the national debt to $14 trillion, or 95 percent of the nation’s entire annual GDP, in FY2010. With this kind of debt load, Uncle Sam couldn’t quality for one of those sub-prime mortgages the feds have been forcing banks to give unqualified home buyers for decades.” — The DC Examiner
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