The latest Congressional Budget Office (CBO) report has found that the national deficit is continuing to shrink under President Obama.
The CBO estimates that this year’s deficit will be $514 billion, which is around one-third of the size it was when President Obama took office in 2009. By 2015 the deficit will have fallen to below $500 billion, representing just 2.8% of US GDP. The deficit is expected to then increase but at a much slower rate than before, remaining at or falling just below 4% of GDP. This is because while revenues will increase in that period, but there will be a sharp rise in benefits paid out to an increasing number of retirees.
Politicsusa.com urged its readers to use these figures to counter claims from the GOP that President Obama and the Affordable Healthcare Act (ACA) are damaging the economic recovery, and reminded them of the mammoth task that president faced when he took office:
[box type=”shadow”]”As often as possible, it should be pointed out that President Obama inherited a hemorrhaging economy and a national deficit in his first year of $1.4 trillion. During his watch, he has cut the unemployment rate from a high of 10.0% in 2009 to the current rate of 6.7%. As it stands, he has cut the deficit by nearly a trillion dollars, and the national debt is stabilizing for the first time in a while. The housing market has rebounded and for the first time in seemingly forever, manufacturing jobs are increasing.”[/box]
The figures are, of course, welcome, but the President and Democrats cannot be complacent. The economic recovery is largely bypassing the majority of Americans. It is estimated that 95% of the post-2008 gains have gone to the top 1% of earners. Americans Against the Tea Party recently reported on a new study which found that for the first time the majority of people on welfare are in work, and that the US is now ranked 34th out of 35 industrialized nations for child poverty.
However these are not priorities for the Republicans and the Tea Party. Their legislative priority is cutting the deficit and spending off the backs of the poorest and most vulnerable in society. Their pathological obsession with repealing the ACA was summed up by Senator Ted Cruz (R-TX), who tweeted:
[box type=”shadow”]Ted Cruz ✔ @tedcruz
Obamacare will contribute “to a $1 trillion increase in projected deficits” – CBO #FullRepeal
7:35 PM – 4 Feb 2014[/box]
As Politicsusa.com noted, this claim is characteristic of both Senator Cruz and the Tea Party in general:
[box type=”shadow”]”As with all things Ted Cruz, this is mostly BS, as he found a number in the report and decided to blame it on Obamacare. The CBO stated that they have raised the cumulative estimated deficit total by $1.0 trillion due to recently passed legislation and new information about spending and tax collection. The ACA is not recently passed legislation. It was passed in 2010 and the CBO has continued to factor in the passed legislation in their budget reports. Cruz knows this, but it doesn’t stop him from lying.”[/box]