Wednesday, October 20, 2010

U.S. budget deficit hits $1.3 trillion

The Obama administration said Friday the federal deficit hit a near-record $1.3 trillion for the just-completed budget year.

That means the government had to borrow 37 cents out of every dollar it spent as tax revenues continued to lag while spending on food stamps and unemployment benefits went up as joblessness neared double-digit levels in a struggling economy.

. . . Outside of the bailout, the federal budget went up by 9 percent in the 2010 budget year to $3.5 trillion, the Congressional Budget Office reported last week. Food stamp payments rose 27 percent as record numbers of people took advantage of the programs, while unemployment benefits rose 34 percent as Congress extended benefits for the long-term jobless.

$1.3 trillion. That's the annual deficit added to our national debt, not the total debt.

Remember, this is the president who promised to balance the budget by ending foreign wars, cutting waste and spending the money at home. Instead, he expanded our foreign wars and spent like a maniac at home.

Nothing will improve until private sector unemployment drops. But, Obama's policies have been intentionally destructive of increased private sector employment. He won't even let them know what next year's tax rate will be.

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