Budget office figures released Monday would add $89 billion to the 2009 red ink -- increasing it to more than four times last year's all-time high as the government hands out billions more than expected for people who have lost jobs and takes in less tax revenue from people and companies making less money.
The unprecedented deficit figures flow from the deep recession, the Wall Street bailout and the cost of President Barack Obama's economic stimulus bill -- as well as a seemingly embedded structural imbalance between what the government spends and what it takes in.
Just a few days ago, Obama touted an administration plan to cut $17 billion in wasteful or duplicative programs from the budget next year. The erosion in the deficit announced Monday is five times the size of those savings.
I still believe if corporate and payroll taxes were decreased or placed on holiday, families would have more money today then they currently do. More spending would stimulate Corporations to rehire or they would be able to hire more people and the economy would have a better chance at correcting itself. Government involvement to the point of regulating and stepping in with oversight, is only costing us more in taxpayer money to save businesses who have severe flaws and are not taking appropriate actions to fix their problems. The government is giving the likes of Chrysler, GM, Bank of America a huge bandaid when they need amputation.
Answer by grlygrlz2 at 8:44 AM on May. 12, 2009
Answer by Anonymous at 8:47 AM on May. 12, 2009
46 cents/ dollar!!!!!!!!!!!!!!!!!
Looks like we're completely screwed!!!!!!!!!!!!!!!!!!!!!!
Don't worry, though, the unions are taken care of to preserve that union vote for the Democrats, and that's what REALLY matters!
Answer by mustbeGRACE at 9:04 AM on May. 12, 2009
Regardless anon, I think grly is right. This is what the fiscally conservative have been saying for a very long time. All of the money to generate new jobs in the government and private sector, yet unemployment increases. Aren't all of these new jobs not projected to be created until sometime next year? All of the panic set forth to scare people into agreeing with the stimulus that would save us all, yet not a darned thing is coming out of it until next year. Those people that were for it because they were worried that they would lose their job, are now jobless. Seems like bait and switch to me. I don't understand why it wouldn't be possible to give a tax break to small businesses so that they may see a bigger return on their investments and hire more people. Our country is built on small business. I guess they don't have the political pull that corporations have, what with their large donations and campaign backing.
Answer by QuinnMae at 9:07 AM on May. 12, 2009
Answer by Dara.M at 9:19 AM on May. 12, 2009
Answer by mogencreative at 9:30 AM on May. 12, 2009
Answer by mancosmomma at 9:37 AM on May. 12, 2009
Answer by akinbottom2 at 9:40 AM on May. 12, 2009
Dara, Yes. IMO banks and automakers should have been left to file for CH 11 protection and left to handle their affairs the way the system was already set up. With the increased government intervention we are finding out that taxpayer money is being wasted to "hide" and "cover" faulty business practices. When businesses are left to follow the appropriate course action (ie Ch 11 protection) smaller businesses are given the chance to grow and prevail. Since the govt has now stepped in and said they are too big to fail, money is being wasted to protect the likes of executives (who lobby and campaign for politicians) and the likes of the UAW (who also lobbies and campaigns for politicians). It's all a big campaign game at the taxpayers expense. Obama and his admin aren't looking out for the welfare of corporate America and the growth of business in America. They are looking out for their campaign dollars. It's a game of CYA
Answer by grlygrlz2 at 9:47 AM on May. 12, 2009
Answer by akinbottom2 at 9:49 AM on May. 12, 2009
Next question overall
(Just for Fun)
How many sibilings do you have and how many kids do you want?