By Brian Darling
Senior Fellow, The Heritage Foundation
Are we better off under Obamanomics? Hardly, a new report from the Congressional Budget Office (CBO) reveals. According to the CBO, the federal government will spend $1 trillion more than it takes in this year — the fourth consecutive year that has happened. Furthermore, CBO projects negative growth and dismal unemployment numbers.
Remember President Obama’s promise that his stimulus plan would create jobs and set the economy on the right track? The CBO projects that if the Bush tax cuts are allowed to expire and scheduled defense cuts take effect, the unemployment rate will rise to 9.1% and the economy will contract by 0.5% by the end of next year.
The president’s record on the size and scope of the federal government is also terrible, according to this report. Obama inherited $10.6 trillion in debt and has seen it balloon to $16 trillion in his short tenure. His big-spending policies have saddled future generations with trillions in new debt.
This report contains further proof that the president’s proposed tax hikes are terrible for the economy. The CBO reports that “sharp increases in federal taxes and reductions in federal spending that are scheduled under current law to begin in calendar year 2013 are likely to interrupt the recent economic progress.” These policies will lead to “a recession” and “an unemployment rate that remains above 8 percent through 2014.”