2011 Deficit Is 2nd-Largest in History
- Posted on October 18, 2011 at 6:48am by
Becket Adams
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The government ran a $1.3 trillion deficit for the budget year that ended last month, the third straight year it has operated more than $1 trillion in the red.
The 2011 budget deficit was the second highest on record. It is slightly ahead of the previous budget year’s $1.29 trillion deficit but below the $1.41 trillion imbalance record in 2009 (which included the dramatic collapse of financial markets and a huge bailout effort by the government. The nation’s deficit that year was $1.412 trillion), reports The Hill
A decade ago, the idea of the government running surpluses and trillion-dollar deficits seemed almost unimaginable. However, those deficits now loom over tense negotiations in Washington.
Lawmakers are under pressure to agree by Thanksgiving on where they can cut $1.2 trillion over the next decade. If they cannot, automatic cuts to Medicare, defense spending and other areas of the budget would go into effect in Jan. 2013.
For its part, the White House has called on Congress to pass Obama’s budget proposals made last month (that he has been plugging nonstop), which they say would cut $4 trillion from the debt over 10 years, reports Newser
Geithner, according to The Hill, has also urged Congress to enact Obama’s deficit-reduction recommendations from September, which he said would shave $4 trillion off the deficit over 10 years.
“It follows a balanced approach: asking everyone to do their part, so no one has to bear all of the burden,” said White House Budget Director Jack Lew. “And it says that everyone—including millionaires and billionaires—should pay their fair share.”
Again with the “fair share” bit.
For 2011, the government had to borrow 36 cents of every dollar it spent. The string of massive debts has made interest on that debt the fastest growing budget category. For 2011, net interest payments rose 15.7 percent to $227 billion.
Republicans have criticized President Obama for deficits that have skyrocketed since he took office. Much of the shortfall is from smaller tax returns, a result of high unemployment and falling incomes during the recession and a slow recovery, reports The Hill.
Total revenues increased 6.5 percent to $2.3 trillion for the budget year that ended Sept. 30; spending rose 4.2 percent to $3.6 trillion.
The nation’s debt is now $14.8 trillion. The enormity of that figure has stoked intense partisan debate in Congress over spending and taxes.
Congress reached a last-minute deal in August to raise the government’s borrowing limit in stages. However, as part of the deal, lawmakers tasked a 12-member deficit-cutting panel with finding at least $1.2 trillion in savings over the next decade.
Administration officials said Friday that Congress needs to reach an agreement through the supercommittee process but also should approve President Barack Obama’s $447 billion jobs plan. However, the measure fell short of gaining the 60 votes required to be called up for debate in the Senate. All 46 Republicans in the chamber opposed the measure, which seeks to pay for the plan by boosting taxes on the wealthy and corporations
As members of the supercommittee deliberate, party leaders have jousted in public over their conflicting priorities. For Republicans, that means no tax increases. For Democrats, it means no curbs on entitlement programs, such as Medicare, without tax increases.
The August budget deal is projected to trim future deficits by $2.1 trillion. That includes the cuts made by the supercommittee and another $900 billion in savings from caps on discretionary spending.
The cuts are expected to begin in the 2012 budget year. CBO estimates $21 billion in cuts to this year’s deficit, which is estimated to be $973 billion. The Obama administration is estimating that the 2012 deficit will total $956 billion.
The Associated Press contributed to this story.
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Comments (47)
gmoneytx
Posted on October 18, 2011 at 1:34pmWow Obama holds 1st and 2nd place, I wonder if Jimmy Carter is a close 3rd?
Report Post »HKS
Posted on October 18, 2011 at 3:17pmRight on track with the Cloward and Piven blueprint. I’m sure the socialist are pleased with the advancement toward bankruptcy of the US Government Obummer has achieved. His newest entry into that club, the Jobs Bill, could be just enough to make it. The communist world is buzzing over their new protege leading the lost sheep home.
Report Post »db321
Posted on October 18, 2011 at 5:17pmYou haven’t seen anything yet – he still has another year left.
Report Post »lukerw
Posted on October 18, 2011 at 12:17pmI see… Obama is charging 10% of the GNP… per year… for his Services.
Report Post »Jenny Lind
Posted on October 18, 2011 at 11:18amHey, let’s not let facts like this get in the way of the BIG story, Clinton’s birthday and all the A-listers there! I mean what’s more important in a news day, right?
Report Post »SysAdminPgh
Posted on October 18, 2011 at 11:17amWhich party took $500 BILLION from Medicare? They DID reduce entitlements… When will seniors learn?
Report Post »db321
Posted on October 18, 2011 at 5:19pmLook, it not the Seniors fault – they have been watching ABC, NBC, and CBS for 50 years and they are not changing now.
Report Post »WhatsYerProblem
Posted on October 18, 2011 at 11:12amAnd yet the freshman class of conservative Tea-party Republicans has basically allowed this to happen unchallenged! NO BUDGET passed by the DEM Senate!!!!!! The Repubs should be the ones marching in the streets bringing attention to the CRAP Harry Reid is shoveling down our throats in the Senate. But instead they compromise on every continuing resolution “to avoid catastrophic shutdown” of the government. I suppose without their presence the deficit would be twice as high – but this is still a national tragedy! WE’RE SINKING, DAMMMIT! STOP SPENDING MONEY WE DON’T HAVE!!!!!
Report Post »Vechorik
Posted on October 18, 2011 at 10:24amGlenn Beck needs to WAKE THE HECK UP. Ron Paul is the ONLY candidate that agrees with Beck about the dangers of the “new world order.” No other candidate dares speak against it, because they are backed and paid for by the same.
Report Post »http://www.youtube.com/watch?v=HDXHbgpoI80
ProbIemSoIver
Posted on October 18, 2011 at 1:33pmExactly. Beck and 90% of these blazers don’t know the truth, or anything about Wall Street or the U.S. economy.
As a matter of fact, 90% of all the posters on this story, are clueless.
Here, edify yourselves. It will only take 2:14 seconds.
http://www.youtube.com/watch?v=IlCs7u1ihws
Report Post »Scooter123
Posted on October 18, 2011 at 2:22pmvechorik- that has been my problem with the likes of beck and limbaugh for some time. for some reason they seem to embrace Pauls economic message but not his foreign policy message. however, they do not understand that our foreign policy is doing the bidding of the global banks as iran and north korea are a few of the last nations on earth without a rosthchild controlled central bank so the economic message has a direct link to our foreign policy. what is ironic is that through this debt these banks gain further control of our leaders with money that we willingly allow them to print for us that is actually worthless. this is the biggest scam in the history of the world. sadly almost noone understands what is being done to us, and the few of us who do are called conspiracy theorists or nut jobs like ron paul, because when people do not understand or are unwilling to learn the truth they act just like the liberals they despise and start calling you names cause that is all they got. however there is hope because as the saying goes, first they ignore you, then they laugh at you, then they fight you, then you win. those of us sitting with the truth will eventually win.
Report Post »Rightallalong
Posted on October 18, 2011 at 5:09pmTo your point about the US doing the Bankers bidding in regard to foreign policy, everyone should read War is a Racket – it is very timely considering all the seemingly pointless wars that our Nobel Peace Prize President is loving…
http://lexrex.com/enlightened/articles/warisaracket.htm
Written by Two-Time Congressional Medal of Honor RecipientMajor General Smedley D. ButlerUSMC, Retired
Report Post »db321
Posted on October 18, 2011 at 5:23pmWow! 2 Ron Paul Video’s in a row – We have Fleabaggers on one side wanting who knows what and we have Ron Paul people on the other side wanting Legalized Marijuana. Can we catch a break here.
Report Post »ClaytonBigsby
Posted on October 18, 2011 at 9:37amI believe most people to be idiots in this country. They lack the ability to even understand the deficit/debt problem.
“For its part, the White House has called on Congress to pass Obama’s budget proposals made last month (that he has been plugging nonstop), which they say would cut $4 trillion from the debt over 10 years, reports Newser”
It would be nice to see the “debt” cut $4 trillion over ten years. But, they would require HUGE budget surpluses which I don’t see happening any time soon.
Report Post »13th Imam
Posted on October 18, 2011 at 10:38amOr Huge Tax Increases.
Report Post »WhatisMyUsername
Posted on October 18, 2011 at 10:45amWhen they promise future spending cuts. Do you actually believe they would actually follow through? They really mean, a promised $4 Trillion less of future spending increases.
It’s the Government, there here to help.
Report Post »ProbIemSoIver
Posted on October 18, 2011 at 2:22pmAll of you here at this comment are clueless about the economy, just like the editor of this article. It is a lie. I am not saying the editor is lying, he is just passing on the information given to him by “credible” sources. You all are being played like a fiddle. Read the link I posted earlier, right above these comments the get the real truth. There is NO DEBT in reality !!!! Fools !!!!
Report Post »SpankDaMonkey
Posted on October 18, 2011 at 9:24am.
Report Post »It must be nice to have a country full of trained clapping seals, that will let you blow a trillion on nothing. Then start clapping to get you re-elected. What a Country………….
tobywil2
Posted on October 18, 2011 at 9:05amInflation is the cornerstone of cronyism, Mr. Obama’s economic system. Cartoon exposes cronyism: http://commonsense21c.com/images/cronyism-2.jpg
Report Post »db321
Posted on October 18, 2011 at 5:25pmExcellent – Great Post and accurate Cartoon
Report Post »Brittany-Imbriaarts
Posted on October 18, 2011 at 9:01amBut wait the Media and the President say we are in a recovery (Crickets Chirp) Yeah thats a big lie When will they at least admit this is a Depression. (I’m sure a week after Republicans have any more power, when they can say its their fault.)
Report Post »marthasusan40
Posted on October 18, 2011 at 8:45amI do not recognize the country that I awaken to each morning this Fall in 2011…..Violent protest that have difficulty realizing what they are there for? Hollywood and members of Congress urge them to continue to protest knowing that ultimately there will be someone hurt terribly or killed? For What? I feel the left is afraid of these protesters and must cheer them on because they know that they could be in the line of fire next…The world is upside down….Faith is the only constant and stable thing..grab on to it and hold on tight, its going to be a rough ride.
Report Post »TomFerrari
Posted on October 18, 2011 at 8:40amFriend who works in a federal office dealing with mental health just told me;
his offices had 16 employees, 4 years ago. They keep receiving ORDERS to “hire, Hire, HIRE!”
They now have 120 employees. Yep, ONE HUNDRED AND TWENTY where there had been 16!
He says they are stumbling over each other, nobody is productive, and it was MORE EFFICIENT with only 16 employees!! He pointed out that people WERE upset with Republicans. But, now obama OWNS this. He said HE was “P!$$3D” at Bush and that was the general consensus in his office. But that was 3 yrs ago. It continued, he said, for the first year of obama. But, now, it is FIRMLY shifted to obama owning the problem, and getting the BLAME.
From 16 to 120!!
Report Post »And we have a TRILLION+ deficit for 3 yrs running? really?
Let’s see, what do these 3 yrs have in common?
A child-king who thinks spending=votes, and can’t seem to buy enough.
A socialist democrat controlled Congress/Senate (for the most part).
RECORD unemployment.
RECORD government hiring.
RECORD government spending.
RECORD JOB LOSSES.
All under ONE President… barack hussein obama.
tranymike
Posted on October 18, 2011 at 8:37amI didn’t say the plan sucked. i was just saying we still some how got to pay all that OBAMA/bush money back some how.
— —- 2012
Report Post »TRILO
Posted on October 18, 2011 at 8:33amOur tax revenue = our manadatory (entitlement) spending. All other government spending must be borrowed, including our defense. Look at and read the budget summaries; it is pretty straight forward for anyone who wants to take the damn time to look at it. It is right on the CBO website. The Republicans cry the sky is falling if we cut defense and the Democrats cry the sky is falling if we cut mandatory spending. NO ONE, Republicans, Democrats, or Super Committees in Washington will solve this problem. I am sick of calling my representatives about it and I am sick of talking to new candidates (had two sentate candidates talk to my political group) about it. NONE of them seem to get it. All we get is the same old party rhetoric, tow the line or we will not fund you, double speak and/or it is the other parties fault. I’m SICK of it!!!
Report Post »EqualJustice
Posted on October 18, 2011 at 8:24amIt’s ONLY the SECOND largest thanks to some Republicans who finally said enough is enough OR it would have set a new RECORD as the HIGHEST EVER, if Bo had his way! STOP SPENDING, you idiot! WHAT HAPPENED TO THE SOLYNDRA STORY anyway? Buried by the OWS crowd? How convenient…
Report Post »Vechorik
Posted on October 18, 2011 at 8:24amPaul’s plan keeps benefits for the poor (cut the fraud) keeps a strong American defense and balances the budget in THREE YEARS!
Rush Limbaugh wouldn‘t endorse Ron Paul’s candidacy, but NOW LIMBAUGH ENDORSES Ron Paul’s economic plan! Does Limbaugh have a brain? Nahhhhh — But Ron Paul surely does!
Report Post »Limbaugh summarizes Dr. Paul’s plan
http://www.youtube.com/watch?v=1t96QPXbA0g
tobywil2
Posted on October 18, 2011 at 8:12amInflation is stealth taxation!!!!! http://commonsense21c.com/
Report Post »Libby Tarian
Posted on October 18, 2011 at 10:02amWhat is deflation? Depression?
Report Post »cloudsofwar
Posted on October 18, 2011 at 8:06amthe Super Committee. Obamas mini Congress. a waste of time and our Money. oh yes we are going to collapse, the debt is out of control and everyone knows it. why is the republican base pushing Romneycare on us? this is feeling like 2008 all over again. Romney v Obama = 4 more years of the Marxist in chief. we all know we have to stop borrowing and make massives cuts to spending as a country and as citizens. where is Boenher? why isn’t he speaking out on this matter and the Occupiers? we are a one party system now. we are so screwed.
Report Post »Tomfang
Posted on October 18, 2011 at 8:05amCut 1.2 trillion over 10 years ??? We need to cut at least 1.2 trillion PER YEAR !!!
By the way, 1 trillion is $3,000 per person, or $12,000 for a family of 4.
Report Post »rightwingheroes
Posted on October 18, 2011 at 7:58amHope and Change
Report Post »TxMadMac
Posted on October 18, 2011 at 7:47amScripture; “ NEITHER A BORROWER NOR A LENDER BE ” When Almighty God cautions us, it’s for a good reason. Look at the mess the politicians have created by not obeying His words of wisdom !
Report Post »lel2007
Posted on October 18, 2011 at 7:43amI wonder what my ‘fair share’ of the deficit is. I’ve heard that 50% hold a ‘fair share’ of 0% of the deficit.
Report Post »sissykatz
Posted on October 18, 2011 at 7:25amSome people are shouting “four more years”. How on eartth can we make it 13 more months???
This man has destroyed this Country…… How did we ever let him in office??? People actually
Report Post »voted for him….. I certainly hope they have learned their lesson. WE THE PEOPLE have.
EWWGPDN
Posted on October 18, 2011 at 7:21am…and people are protesting on wall street. Amazing what our education system has done to young people.
Report Post »Vechorik
Posted on October 18, 2011 at 7:28amRush Limbaugh wouldn‘t endorse Ron Paul’s candidacy, but NOW LIMBAUGH ENDORSES Ron Paul’s economic plan! Does Limbaugh have a brain? Nahhhhh — But Ron Paul surely does!
Limbaugh roughly goes over the Paul Plan:
Report Post »http://www.youtube.com/watch?v=1t96QPXbA0g
liberalismisacancer
Posted on October 18, 2011 at 7:12amhow’s that “hope and change” thing workin out for you?
Report Post »Chet Hempstead
Posted on October 18, 2011 at 7:23amNot as much change as I had hoped for, but I hope that will change after next year when we vote most of the Republicans out of office.
Report Post »liberalismisacancer
Posted on October 18, 2011 at 7:50am@chet…. if youlike communism so much….why not go to venezuela,china, cuba,etc..
Report Post »its already there and you wont have to work so hard….
loser
Blackhawk1
Posted on October 18, 2011 at 8:58am@ Chet
You mean like what happened in the 2010 election and the conservatives took over the House and stopped Obama’s march to a socialist America?
Keep that hope alive but get ready for a big change in 2012 because that will be when the Democrat socialist party dies and won’t see a majority except when 1/2 of them are in prison for treason and sedition against the United States of America.
Report Post »13th Imam
Posted on October 18, 2011 at 10:42amNow Chet
That Was Funny.
Report Post »