RSC Balances the Budget While Obama Doubles Down on Debt

Stephen Keen / June 03, 2010

Last week, Congressman Jim Jordan (R-OH) and Tom Price (R-GA) introduced the Republican Study Committee (RSC) FY2011 budget. This is a welcome fiscal blueprint that would restore fiscal discipline to the nation and avert a Grecian formula meltdown. It also does an excellent job of drawing a sharp distinction between a conservative fiscal plan and the liberal proposal presented by President Obama’s budget. Comparing President Obama’s own budget projections to the RSC’s tells the story of two very different futures for the United States. While the focus is primarily spending and revenue targets, there are sound policy recommendations in the RSC blueprint. One budget sees a nation sinking deeper and deeper into debt while another envisions a significant reduction in spending growth and a return to balanced budgets within the decade.

The numbers paint a striking picture:

Deficits

Obama: The 2019 deficit is projected to reach $908 billion, and in 2020 would climb to more than $1 trillion. Over ten years the Obama budget runs $8.5 trillion in deficits.

RSC: Balances the budget within ten years and achieves surpluses in 2019 and 2020. Over ten years the RSC budget runs $2.5 trillion in deficits.

DIFFERENCE: In a ten year window the RSC budget will run $6 trillion fewer deficits than the Obama budget. (more…)