What’s That Awful Smell?

Ladies and gentlemen, the federal budget forecast:

FY 2011 projected revenue: $2.174 Trillion
FY 2011 projected spending: $3.819 Trillion
FY 2011 projected deficit: $1.645 Trillion
Spending as a % of GDP: 25.3%
Deficit as a % of GDP: 10.9%

FY 2012 projected revenue: $2.627 Trillion
FY 2012 projected spending: $3.729 Trillion
FY 2012 projected deficit: $1.101 Trillion
Spending as a % of GDP: 23.6%
Deficit as a % of GDP: 7.0%

FY 2013 projected revenue: $3.003 Trillion
FY 2013 projected spending: $3.771 Trillion
FY 2013 projected deficit: $768 Billion
Spending as a % of GDP: 22.5%
Deficit as a % of GDP: 4.6%

There are three reasons why the budget proposal smells like it came out of a horse’s backside.

First, politicians are notoriously untrustworthy, particularly if their name happens to rhyme with, say, Shmarack Nobama.  Really, these projections seem like nothing more than a cheap political ploy.  Furthermore, these projections are dependent on the president’s recommendations being made law by congress.   Good luck with that.

Second, the assumptions are just horrible.  Do the clowns in the White House really believe that tax revenue is going to increase in light of 9.9% unemployment?  (Really, the more accurate measurement puts the unemployment rate north of 20%.)  Does the administration think that the dramatic increase in taxes and regulation known as ObamaCare, (assuming the Supreme Court doesn’t eventually overturn it) will lead to growth?  Really, the growth assumptions have little to do with reality.  And that’s why they stink.

Third, even if all these projections were spot-on, it’s still not enough.  We cannot afford any more deficit spending.  Period.  Put simply, the cuts aren’t enough, and once you factor the true recovery trajectory, assuming there even is one, there will need to be even more cuts.  This proposal isn’t good enough.

Obviously, then, Obama and Co. are trying to polish a turd.  But no matter how shiny they try to make it, it still smells.