First, the deficit numbers reflect current interest rates. These rates won’t stay forever. It’s calculated at 2.5% interest. If interest rates go to the average of 5.7%(past two decade average), the deficit would increase by $4.9 trillion over the next ten years.
Next, the growth in GDP is forecast at 4% in 2012, 4.5% in 2013, and 4.2% in 2014. Those are the numbers in the Obama budget used to predict the deficit. If it stays at the 2.5% rate that adds another $4 trillion to the deficit over those three years.
Last, it’s that little item called ObamaCare. The McKinsey survey showed that 30% of businesses will drop their coverage for employees and pay the fine. If McKinsey is right that adds $74 billion in 2014, $85 billion in 2019. Very few believe the costs Obama has baked into the ObamaCare estimates. Waivers for 1,400 employers have already been given.
If Obama got his wish to tax the rich, that would add $700 billion in revenue over 10 years. That would not even cover the difference in interest rates between reality for the past 20 years and Obama reality.
Want to become Greece? Just buy the voodoo economics Obama is selling. Drink the Kool-Aid and destroy the future for your kids and grand kids.
