McCain and Palin were excoriated for calling Obama a far left tax and spender.
Here’s McCain at a campaign stop, last October:
They were accused of lying, but were they?
The point was that Obama was promising so many things that to pay for them he would eventually have to raise taxes on people making far less than $250,000. Look out, McCain warned — someday he’ll come after you.
And that is precisely what is happening:
The deficit issue could be one of the most, if not the most, consequential of Obama’s unkept campaign promises. Just how consequential was made clear last week in a little-noticed conference call featuring Budget Director Peter Orszag. Orszag was trying to explain to reporters how the Obama administration calculated its rather rosy forecasts for economic growth. Near the end of the call, he was asked whether deficits along the lines of those predicted by the Congressional Budget Office are sustainable.”
Orszag at first dodged the question, saying he was sure the final Obama budget will “reflect a fiscally sustainable path.” But the questioner persisted: Are those deficits sustainable? Relenting, Orszag said such deficits, in the range of five percent of the Gross Domestic Product, “would lead to rising debt-to-GDP ratios in a manner that would ultimately not be sustainable.”
The simple version of that is: If the Congressional Budget Office projections are correct, we’re headed for hell in a handbasket.
I asked McCain what might happen if Obama and Orszag get their way. First, the U.S. could have to print a lot of new money, “running the huge risk of inflation and returning to the situation of the 1970s, only far worse,” McCain said. The second option is to raise taxes.
Just this week, former Clinton budget director Alice Rivlin conceded that Obama’s budget could present a “scary scenario” that would “raise deficits to unsustainable levels well after the economy recovers.” The solution, she wrote, is higher taxes, and not just for the richest of the rich.
Was this not all depressingly predictable?
Cuffy Meigs sure nailed it, last October:
Hat tip: Slublog, AoSHQ