President Obama's $3.7 trillion budget for Fiscal Year 2012 will create an unnecessary $1 trillion deficit that will ultimately harm the economy. Deficit spending of $1.3 trillion or more was needed in FY 2009-2011 to boost the economy out of recession. But FY 2012 doesn't start until October 2011. Although unemployment will probably remain around 9% until then, consumer confidence is returning as economic growth improves. What exactly is the money -- YOUR money -- being spent on?
What It Means to You
Much of the increased spending is for defense-related security ($881 billion), Social Security ($761 billion) and Medicare/Medicaid ($737 billion). Why is no one looking at cutting these behemoths - especially defense spending? Republicans criticize Obama's budget, but they are only looking at cutting non-defense discretionary spending - a paltry (by comparison) $491 billion. Even if you cut the entire amount, you'd still have a $509 billion deficit.
Hello? Is anybody listening? Deeper cuts must be made to Defense spending, or it will come out of our Social Security and Medicare benefits - which we've already paid for.
By adding to the staggering $14 trillion debt, the $1 trillion deficit is dragging down the economy, and it will only get worse as time goes on. That's because it acts like a tax on future generations.
Where Does the $3.7 Trillion Go?
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