Saturday, April 04, 2009

Trillion Dollar Deficits as Far as the Eye Can See

Who's going to pay for it? Everyone. Here's a great economic analysis of the current budget, but the best is at the end:

But what is not just worrisome but dangerous are the growing trillion dollar deficits in the latter years of the Obama budget. These deficits are so large for a prosperous nation in peacetime -- three times safe levels -- that they would cause the debt burden to soar toward banana republic levels. That's a recipe for a permanent drag on growth and serious pressure on the Federal Reserve to inflate, not the new era of rising prosperity that Mr. Obama and his advisers foresee

Higher inflation, lower growth. Who does that hit the hardest? The lower classes, or people who voted democrats into office. It's sort of funny how much democrats hate their constituents.

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