(CNSNews.com) - When President Barack Obama gave a primetime press conference on March 19, he used the terms “invest” and “investment” 18 times to describe the deficit spending he wants the federal government to pursue under his budget plan.
In another primetime press conference last night, Obama again used the term “investment” three times to describe the deficit spending while almost in the same breath decrying “overleveraged banks” and those who “maxed-out on credit cards.”
Merriam-Websters Online Dictionary defines “investment” as “the outlay of money usually for income or profit.” It defines “invest” as committing money “in order to earn a financial return.”
Investing is something private individuals or companies do with their own money. What President Obama is talking about is borrowing money and having the government spend it now while relying on taxpayers to pay the interest on what amounts to the “maxed-out” credit card held by Uncle Sam.
Obama likened the trillions of dollars in new national debt he is planning to incur to a solid foundation for rebuilding our national economy.
“But, even as we clear away the wreckage of this recession, I've also said that we can't go back to an economy that's built on a pile of sand, on inflated home prices and maxed-out credit cards, on overleveraged banks and outdated regulations that allow recklessness of a few to threaten the prosperity of all,” said Obama.
“We have to lay a new foundation for growth, a foundation that will strengthen our economy and help us compete in the 21st century. And that's exactly what this budget begins to do,” he said.
“It contains new investments in education that will equip our workers with the right skills and training, new investments in renewable energy that will create millions of jobs and new industries, new investments in health care that will cut costs for families and businesses, and new savings that will bring down our deficit,” he said.
Because the federal government is already running a deficit, all spending increases pursued by Obama must be covered with money the government will borrow while planning to charge future taxpayers for the interest on the borrowed money.
As long as the federal government remains in debt, federal taxpayers must continue paying interest on that debt year after year. The higher the national debt, the more interest taxpayers will be forced to pay each year.
Meanwhile, the growing volume of tax revenue that must be dedicated each year to paying the growing interest on the federal government’s debt cannot be “invested” by private citizens and businesses to create jobs and grow the economy.
Last Month, the Congressional Budget Office (CBO) concluded that Obama’s budget proposal would massively increase the national debt.
“CBO has also analyzed the policy proposals outlined in the President’s preliminary budget request,” said CBO’s report. “Under those policies, the deficit would total $1.8 trillion (13.1 percent of GDP) in 2009 and $1.4 trillion (9.6 percent of GDP) in 2010. The cumulative deficit over the 2010–2019 projection period would equal $9.3 trillion and would average 5.3 percent of GDP. Debt held by the public would rise from 57 percent of GDP in 2009 to 82 percent of GDP in 2019.”