Dr. Boudreaux over a Café Hyack highlights some great “shocking stats” inherent in a Charles Krauthammer column the other day. Krauthammer’s column (“The Obama budget and the appearance of reform,” April 12), addresses Obama’s new budget proposal wherein Krauthammer notes that the actual budget deficit reduction in the budget proposal over a decade was a scant $0.6 trillion out of a total spending of $46.5 trillion.
The effects on the debt, Boudreaux notes, will be “negligible.” In fact: “The year in which the amount of Uncle Sam’s debt held by the pubic will reach its lowest level under the Obama plan…the amount of such debt will be 73 percent of GDP – just what it is today and nearly double (!) the historical average of 37 percent” (see his full post here)
What, in the end, is most shocking is the amount of hock our administration is tacitly accepting and furthermore, given we haven’t had a budget in years, that this is the best they can come up with propose after all this time.