Today, the Obama administration is expected to release a report highlighting the Democrats fiscal irresponsibility. While only preliminary estimates, the deficit is expected to be an unsustainable $1.29 trillion—the second straight year of Democrat deficits greater than $1 trillion.
Second Largest Deficit in History:
The fiscal year 2010 deficit represents the second largest nominal deficit in American history—second only to the Democrats’ deficit of $1.413 trillion for fiscal year 2009. According to press reports, the Obama administration is also set to release estimates for fiscal year 2011. Those estimates are expected to show the deficit increasing to $1.4 trillion, much higher than originally projected.
Economists consider a deficit equal to three percent of gross domestic product (GDP) to be the maximum sustainable level. The revised budget deficit for fiscal year 2010 ($1.29 trillion) represents a deficit that amounts to 8.9 percent of the economy—far larger than what is considered sustainable. In fact, the Congressional Budget Office estimates that based on Democrat budgets, the federal government will continue to spend beyond its means and run unsustainable budget deficits indefinitely.
Nothing Good About this News:
Today’s report represents the disastrous fiscal path on which the Democrats have put the nation. Deficits of this magnitude further threaten the nation’s economic prosperity and lower the standard of living for future generations.