Skip to content

Confronting the Myth of Borrowing Our Way to Solvency

July 25, 2009
Allan C. Brownfeld

Despite President Obama’s $787-billion stimulus plan, the U.S. economy is showing few signs of recovery. The President said in January that unless this plan was adopted, unemployment, then 7.6 percent, would reach 9 percent by 20l0. Now, halfway through 2009, the rate is already 9.5 percent. “Everyone guessed wrong” about the economy, said Vice President Joe Biden.

Both parties seem to share the illusory idea that we can borrow ourselves back into solvency. As bad as the deficit was under President George W. Bush — and in those days Republicans did not display much concern about deficit spending — it will quadruple this year, from $459 billion in 2008 to $l.85 trillion , according to the nonpartisan Congressional Budget Office (CBO). President Obama promises to cut this in half within four years; even if he does, this will still leave the deficit bigger than those for which he once attacked Mr. Bush.

The story continues …..

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: