Sources: Moody’s Economy.com; Congressional Budget Office; Office of Management and Budget
Notes: U.S. Deficit measured in billions of dollars; GDP measured in 2007 U.S. dollars
I am the first to admit that I am not a political God or genius in any shape or form. Sure I understand the Republican Elephant and Democrat Donkey (come on now, they didn’t make those political beanie babies for nothing!) and I follow their different thoughts and opinions, but beyond that things get hazy. However, graduation from the bubble is only a year and a half away, and that means bills, taxes, jobs (hopefully), buying a house (or living at home…), etc. This year I have made an effort to spend more time paying attention to the election process and trying to understand what is going on in the world around me. Don’t get me wrong, I am far from becoming the next presidential candidate, let alone watching the news regularly, but it is all about the baby steps.
When asked what my biggest question about the current economic question was, I immediately went to the issue of money, especially since that seems to be everyone’s biggest concern. After googling around and looking at different opinions I was left confused. The first article I looked at discussed Obama’s plan to cut the federal budget deficit in half in four years. The Congressional Budget Office is already forecasting a deficit for this year of $1.2 trillion, and Obama plans to halve four years worth of debt? Is this humanly possible? And where will this money come from? President Obama believes that the “$787 billion economic stimulus package he signed last week” would “dramatically slash the skyrocketing annual budget deficit.” While I agree with President Obama in reducing the deficit that helped cause the current economic crisis, I am worried that all the spending he proposes will counteract it.
A second article that I had read earlier today from my dad made Obama’s four year plan so hard to believe. This second particular article also talked about the deficit. However, it discussed “President Obama plans to borrow about $7 trillion over the next ten years to finance all of his spending plans.” Putting this into perspective, the article also included an interesting table that measured Projected U.S. Budget Deficit vs. Foreign GDP. “The attached chart compares Obama’s projected deficit with the 2007 GDPs of the eleven largest economies on earth other than that of the U.S.”
So now we have Obama creating this spectacular plan to save our economy, while doling out an additional $7 trillion? Huh? My biggest question about the economic crisis is simply, huh? The controversy and discrepancy between articles, Obama’s proposals and intentions, the overall status of our economy, etc. are viewed and interpreted so widely that it is hard to get a good grasp on the concepts. Money is thrown around left and right while the clock ticks and we must decide what to do.