Romney - Obama: Neither Stops Deficit Spending

Wednesday night's debate between Incumbent Barack Obama and Republican Mitt Romney was definitely lop sided in Romney's favor. His presentation and poise and ability to attack and appear firm and resolved looked good on camera. Obama looked like a little boy being scolded, which is how he often appears when he doesn't have his beloved teleprompter. However the numbers each chose to throw out concerning the national budget deficit were less than to be enthusiastic about.

Both men claim that their plans would cut spending and bring the federal budget into balance which is just ridiculous. Anyone who understands how the budget works will recognize that is just smoke and mirrors on both sides. For an explanation of that see my article on how the politicians work their magic to deceive us into thinking that there are real cuts when there are none at all. In fact, it doesn't even begin to address the real debt America has that is in the hundreds of trillions of dollars.

Before I go further, just let that sink in for a bit. Now if you can't visualize that amount of money, I've put together a visual aid to help you picture just how much money we are talking about. Take a look.

The independent Congressional Budget Office (CBO) report demonstrates that both candidates proposed plans actually increase the $1 trillion deficits that the federal government is expected to run next year.

Thomas Eddlem at The New American writes,

President Obama criticized Governor Romney's tax proposal, charging that he would increase deficits through a “$5 trillion tax cut” and a $2 trillion increase in military spending. “It's math,” Obama charged, echoing the words of former President Bill Clinton at the Democratic National Convention. “It's arithmetic.”

But the math applied by Obama was based on Romney's proposed cumulative tax cuts and military spending increases over the next 10 years. The 10-year figures are deliberately exaggerated figures since much of the money involved would be in the final few years of the 10-year period, when Romney wouldn't even be eligible to serve as president even if elected to two terms. Romney countered that “I'm not looking for a $5 trillion tax cut. What I've said is I would not put in place a tax cut that adds to the deficit.” Romney outlined five goals he'd seek if elected as president, the fourth of which is to “get us to a balanced budget.”

Despite Obama's deceptive exaggerations, Romney's proposals would not only fail to get the federal government to a balanced budget, it would increase the federal deficit immensely. Romney has failed to propose spending cuts that would match his substantial tax cut proposal (which includes cutting income tax rates 20 percent across the board) and proposed increases in military spending (some $200 billion in 2016 alone).

But not to fret, because Obama's math doesn't exactly add up either. Once again, Obama put the blame on someone else. "When I walked into the Oval Office, I had more than a trillion dollar deficit greeting me," he said. "And we know where it came from: Two wars that were paid for on a credit card. Two tax cuts that were not paid for and a whole bunch of programs that were not paid for and a massive economic crisis.”

Barack Obama has overseen deficit spending of over $1 trillion each year he has been in office and it will continue into 2013 as well. He has overseen this with a Democrat led Congress, as well as, a Republican led Congress and since Congress is the one that has authority via the Constitution to deal with spending, it is ultimately responsible for what gets spent.

The same CBO report demonstrates what I just wrote and that is the continued deficit spending will continue no matter who is elected.

While Obama said that he had put forward a very specific $4 trillion deficit reduction plan, his math doesn't add up either. In fact, even with the enormous taxes of Obamacare, the deficit would still increase by an additional $3.5 billion. It would not cut anything, but would increase by $3.5 trillion over the next 10 years.

Politifact examines what both men claim and their conclusion was as follows:

The Obama campaign ad said Romney would increase the deficit by trillions while Obama would cut the deficit by $4 trillion. Obama's deficit reduction plan is much more specific than Romney's, but for a sitting president, that's expected.

Still, independent analysts say that Romney's plan is so vague that it's difficult to know how his plan will impact the federal budget. What are missing are the politically sensitive details on which programs he would cut and which tax breaks he would reduce. What we do know indicates his plan could drive up deficits, potentially a great deal.

The Obama plan offers enough details to estimate its impact with more accuracy. Independent analysts estimate savings of about $2.4 trillion over ten years due solely to his proposal. Obama’s plan on its own does not produce the full $4 trillion. Plus, estimates over 10 years are always uncertain and some analysts caution that achieving the $4 trillion goal by itself does less to solve the deficit problem than the president suggests.

The point is that neither man has a plan to balance the budget. Both men's plans so far demonstrate that they will continue deficit spending and yet the American people are constantly told that both Romney and Obama can fix this "fiscal cliff." The reality is that neither man has put up a detour sign to the fiscal cliff. Both are still pressing forward in that direction and putting on the brakes won't stop the country from going off the fiscal cliff, it will just cause it to do so in slow motion.

UPDATE: Ben Swann took a swing at the deficit numbers presented by both candidates and look at what he found out:

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15 thoughts on “Romney - Obama: Neither Stops Deficit Spending

  1. To be honest, if Romney, the businessman, really wanted to "fix" the economic problems we face as a country, if he told the truth he would never get elected. He would have to slash spending so drastically that it will piss off a lot of people as they will approve of the budget cutting until it hits a program they want or like.
    In order to do it properly he will have to "rip off the band aid" in one shot so the pain will be quick. If he doesn't do it like that he will be no different than Obama and just manage the collapse.

  2. It is hard to determine who's plan will succeed over a ten year span. The only reasonable way to handle the deficit is for the house to step up to the plate and do their jobs. They control the purse strings.
    However, it is hard to believe a man who still after 3 years has not only managed to add trillions to the debt but continues to blame the last administration for all the budget problems.

  3. Romney – Obama: Neither Stops Deficit Spending
    - Thank you for pointing this out as one of the main reasons for conservative, Tea Party types to NOT vote for Romney. Vote your conscious for the best small government, fiscally conservative, Constitution-loving, pro-life candidate on the ballot or write in a candidate's name. Do not allow the big government, fiscally irresponsible, "turn a blind eye towards abortion" Establishment GOP ram an unwanted candidate down your throats! You have other options between Obama & Obama-lite.

  4. “Romney – Obama: Neither Stops Deficit Spending” as if
    anyone in either party really wants to cut spending or reduce immigration. Yes
    I know, in the end of voting immigration matters not! This is why immigration
    will be the reason for the end.

    “Romney – Obama: Neither Stops Deficit Spending” as if
    anyone in either party really wants to cut spending or reduce immigration. Yes
    I know, in the end of voting immigration matters not! This is why immigration
    will be the reason for the end.

  5. Vote Romney, Vote republican all the way.

  6. David S. McQueen says:

    The deficit (spending more than is in the budget) could be diminished by getting the federal government out of the way. Easier said than done, but Romney wants that and Obama doesn't. A robust economy, with low unemployment, will bring in more tax revenue (except from that 47% who don't pay federal income tax). Obama wants to raise taxes and that WON'T create jobs, won't allow people to spend more money. Obama plans to raise taxes to bring in more revenue, but what about the increased cost of ObamaCare? That surely won't create jobs, will probably diminish jobs. Obama's wrong, Romney's right.

  7. Romney's budget can work! Cutting marginal tax rates and eliminating deductions changes the decision-making process. If you get to keep more of the NEXT dollar you make, you have more incentive to work a litter harder or longer. That is the effect of the marginal rate. So for a business owner taxed at personal rates, the cost of growing the business from its current level goes down if the top rate is lower, but the government gets more revenue. If they don't grow the business, they will lose the deductions and not have new income to replace it. Most of the time, raising marginal rates results in reduced revenue. Reducing marginal rates actually grows revenue. it has worked every time.

  8. Great job Raymond. I usually agree with most of Tim Brown's blogs, but not this time. I believe that as a businessman, if there are tax loopholes out there, Romney knows where to find them. That will plug one of the holes in the dam. The only thing, that I can remember Romney not addressing, that I do not agree with is vouchers instead of medicare. We DO need to lower taxes on businesses, if it is cheaper to build elsewhere, why build here?

  9. Both said Ben Bernanke and Timothy Geithner was doing a good job. Both said they were not going to touch the fed. Really? Romney even said he was going to keep some of Obamacare if he is elected. Some choice. One wants to involve us in another war, while the other is helping Islam get a strong hold both in our government and in our schools. One of Obama's cabinet members even was allowed to swear into office using the Koran. What an insult to our country. The same five major Wall St. banks that funded Obama in 2008 are the largest contributors to Mitt Romneys campaign in 2012. Even in the same order as in 2008. Goldman Sachs at the head again. The lesser of two evils is still evil.

  10. We need a Libertarian to stop deficit spending.

  11. T’was the night before elections,
    And all thru' the town,
    Tempers were flaring
    Emotions ran up and down.

    I, in my bathrobe
    With a cat in my lap,
    Had shut off the TV,
    tired of political garbage

    When all of a sudden,
    There arose such a noise,
    I peered out my window,
    Saw Obama and his boys

    They had come for my wallet,
    They wanted my pay
    To hand out to others
    Who had not worked a day!

    He snatched up my money,
    And quick as a wink,
    Jumped back on his bandwagon
    As I gagged from the stink.

    He then rallied his henchmen
    Who were pulling his cart.
    I could tell they were out
    To tear my country apart!

    On Fannie, on Freddie,
    On Biden and Ayers!
    On Acorn, on Pelosi'
    He screamed at the pairs!

    They took off for his cause,
    And as they flew out of sight,
    I heard him laugh at a nation
    Who wouldn't stand up and fight!
    So I leave you to think
    On this one final note...