11 September 2008
While McCain and Obama take a pause in campaigning today to honor those lost in the 9/11 bombing, the media continues their campaign for them as do I. No matter who gets to the White House in January, they will have a hard time fulfilling campaign promises. The next administration will be facing a federal deficit of $500 billion driven by a weak economy and an increase in government spending. Each candidate has promised billions in tax cuts or new spending. As the deficit expands it will increase the national debt and possibly slow future economic growth, additionally lawmakers may be forced to pay down that debt by raising taxes. The budget could grow even worse since the Treasury plans to takeover Fannie Mae and Freddie Mac.
Bush’s signing of the bill to continue to pay for the wars in Iraq and Afghanistan until the end of his presidency has raised the debt by about $850 billion. Whoever the next president is, he needs to get the economy going again and create jobs which will increase the growth of tax collections.
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