Next Gen Journal

By Connor Toohill

The new projections call for enormous deficits

Last week, the Obama administration announced that it was changing its long-term budget forecasts, raising the projected shortfall over the next 10 years from $7 trillion to $9 trillion. The difference is mostly due to the recession and the falling revenues that have resulted. Large and sustained deficits are troublesome, especially for members of our generation. It has been observed that deficits are essentially “delayed tax increases.” Eventually, the money must be paid. A continued reliance on deficits will result in either higher taxes or deep cuts to government programs in the future.

On Tuesday, both the White House and the nonpartisan Congressional Budget Office will announce new projections. The outlook is sure to be poor. Given that reality, then, the question becomes: is the administration doing enough to address the problem of deficits and the national debt? President Obama claims, correctly, that much of the deficits are due to policies he inherited from President Bush; he also points out (again correctly) that lowering health care costs is the key element of bringing down long-term deficits. However, the administration is also increasing spending and refusing to raise taxes on those making under $250,000 per year to pay for it all. As a result, recent polls show that the American public does not believe the President is handling the deficit issue effectively: So here’s the question for you:

Is the Obama administration doing enough to address the problem of rising deficits?