President Obama’s $3 trillion+ budget for 2010: $1.75 trillion deficit!

Even though the name of this website is PoliticallyMotivated.net, I usually try to avoid making posts about topics that concern politics because the intent of this blog is not to be about politics (I just thought I was being clever when I created the name). However, I could not help myself from posting about this: the deficit for President Barak Obama’s 2010 federal budget is $1.75 trillion. Yes trillion: 1,750,000,000,000. That is a lot of zeroes:

President Obama on Thursday unveiled a $3 trillion-plus budget that he says will halve the federal deficit by the end of his first term.

The budget for fiscal year 2010 includes substantial investments in health care reform, renewable energy and education.

The budget also includes big cuts for some programs, setting the stage for major political battles as political patrons fight to save budget items in the months ahead.

Based on the proposed budget, the administration projects the deficit for fiscal year 2009 will reach $1.75 trillion, or 12.3 percent of U.S. gross domestic product. That’s a record in dollar terms and is the highest as a share of GDP since World War II.

Source: CNN.com

If you want to read up about the budget in full detail visit Budget.gov.

A quick explanation about the difference between the US national debt and the national deficit:

  • The national deficit is the amount of money the government spends in one fiscal year (such as in 2010) that it does not have (i.e. revenue by taxes and other sources of income is not enough to cover all the spending).
  • The national debt is the total of all the national deficits (or surpluses – yes we have had surpluses) of each fiscal year since the USA was created.

The national debt is usually the number that is quoted by many people. The national debt is:

(Source: zFacts.com)

I don’t know about you, but that is a whole lot of money. Think about how many hungry people around the world we could feed with that money; or how many awesome cars we could buy Ashraf with that money.

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12 comments

  1. Jean-Luc Picard

    Yeah, i got it-
    I really need to pay more attention to that kind of stuff.
    10 trillion + 2009’s deficit + 1.75 trillion
    The ticker is a constant up-to-date debt as of right now. So it includes some of the deficit of 09 already in it, but not all since 09 fiscal year is still going on.

    I was just trying to be quick. For some reason, I always act like the internet will disappear in 20 seconds.

    Thus the short comments.

  2. Ashraf
    Author/

    Gonwk,

    Sometimes a stimulating political debate can be good for all us software junkies :)

    Anyway, come on that is a little bit extreme don’t you think? I really did not support either side, Republican/McCain or Democrats/Obama, during the election and I am not taking sides now. However, the Republican approach really was not getting us anywhere; a change is nice for once. Only time will tell if it has a positive or negative effect on the USA.

    No need to cry socialism yet :) However, reading up on recent numbers, Obama’s spending seems to surpass even FDR’s during the great depression. So ya :O

  3. gonwk

    Ashraf,

    Your website YOUR Rules. But I would rather stick to software and freebies.

    BTW just because Obama’son came in at the wrong time (the Financial Crisis that was dictated and created by the die-hard liberals) that is NOT an excuse in itself to SPEND money like there is NO Tomorrow for More HAND-OUTs and SOCIAL programs. Americans have been and are being continually being “Conditioned” to feel they deserve everything for FREE and without Working for it.

    BTW, USA should change it’s name to USSA (United Socialist States of America).

    G!:)

  4. Ashraf
    Author/

    Well in Obama’s defense, he become President during an economic crisis. Economic policy review of the past has shown that the outcome of an economic crisis is a lot worse if the government sits back and does nothing (see Japanese crisis of the ~90s).

    However, this is a lot of money. Personally I don’t have a problem with spending that much money as long as it is put to good use (like improving our health care system). As you sow shall you reap; if investment now means better conditions/social services for us in the future I am all for it. The only problem is we won’t know how fruitful our investment was until years after we have already spent the money.

    In any case, Obama and the Democrats are a welcome change over Bush and the Republicans because, frankly put, Bush and Republicans didn’t do much except invade countries. In my opinion of course.

  5. Gary

    Well Obama won by a slim margin in the popular vote. It was NOT a big win by any stretch. Lots of the people voted because 95% of the people will be getting a tax break. The tax break is $13/Week. Wow. Obama really is showing tremendous compassion. Hope the pepole that voted for him are happy.

    The problem with the Bush administration was it spent like drunken sailors. Nobody argues this point. Congress spent like crazy on a Republican ticket. Shame on Bush.

    Guess what? Obama in his first 30 days has spent more money than both wars and hurricane Katrina relief spending in the last 7 years. 30 DAYS of a liberal democrat with his pals in congress. America is headed for its demise.

    This is truly a sad day for America. Sad year coming for America. Sad 4 years coming for America. But Obama is an eloquent speaker. Maybe we can enjoy his wonderful speeches while we are in bread lines.

  6. David Roper

    Yep, it’s a lot of money, a boat load – the Democrats have gotten everything they wanted in these money bills. The Republicans have not acted conservatively like Reagan did. That’s the biggest problem. John McCain did not offer enough of a difference to fight over. So, with Democrats owning the majority in the House and the majority in the Senate and, now, also the Presidency, we can only bend over and wait for it to come. 1-2-3. Preparation H, anyone?