Trillion-Dollar Deficits:

Obama Warns of Prospect for Trillion-Dollar Deficits “for Years to Come”

Slowing tax revenues and a historic bailout of the U.S. financial system will send the budget deficit soaring toward $1 trillion this year, President-elect Barack Obama said on 01-06-09, and the red ink stands to get substantially deeper if Obama wins approval of a massive economic stimulus plan.

Even if the package of spending and tax cuts helps restore the nation’s immediate economic health, Obama said, the government is likely to be left with “trillion-dollar deficits for years to come” unless policymakers “make a change in the way that Washington does business.”

“We’re going to have to stop talking about budget reform. We’re going to have to totally embrace it. It’s an absolute necessity,” the president-elect told reporters a day before the Congressional Budget Office is set to release its outlook for the coming year.

When President Bill Clinton left office in January of 2001 the federal budget was balanced. Now, after eight years of George W. Bush and the Republicans, we are faced with a failed economy and years of trillion dollar deficits. Now the National debt is $10.7 trillion (updated January 7, 2009)

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