President Obama’s Debt Plan? More Debt.
By Peter Suderman
President Obama’s 2012 budget proposal is primarily a political document — built to highlight the president’s priorities and outline a vision for the country. No one expects it to pass.
But here’s what would happen if it did,according to the Congressional Budget Office: The 2012 deficit would be $1.3 trillion—8.2 percent of gross domestic product and $82 billion higher than the current budget baseline. Next year, the deficit would decline, but still clock in at $977 billion, meaning that federal borrowing would account for more than 6 percent of the country’s total economy. In the following years, deficits would continue to decline, but will still be higher than the budget office baseline by between 1.4 and 1.9 percent of GDP each year.