January 7th, 2009
10:26 AM ET
11 years ago

Government: Budget deficit will rise to $1.2 trillion

NEW YORK (CNNMONEY.com) - The U.S. budget deficit in 2009 will rise to record $1.2 trillion, or 8.3 percent of gross domestic product, not counting any stimulus from President-elect Barack Obama, the government estimates.

Filed under: Economy
soundoff (75 Responses)
  1. CanIcallyouJoe

    Thanks W!

    Those wars are really starting to show their effectiveness!

    Wait wait... what am I saying!? What do wars of attrition need again? Oh, that's right: willing troops and money.

    Hmm... wait.....money, you say?
    Hmm.. this is a hard decision...
    Economy or an illegal war...
    Economy or an illegal war.....
    Economy or an illegal war........


    PROTIP: Spending 10 Million a week for a war that never should have happened while the economy plunges = BAD IDEA.

    January 7, 2009 10:38 am at 10:38 am |
  2. Nick - West Hills (L.A.), CA

    Thanks George!

    January 7, 2009 10:39 am at 10:39 am |
  3. Bridgette-PA

    Ok, what do you want us to say? We all knew this was coming.

    January 7, 2009 10:39 am at 10:39 am |
  4. Ray Fisher

    The only way out of this mess is a national effort to save & conserve our resources so we can free the credit markets in about two years. The economy cannot be repaired on the fly with blow-out patches as it is suffering from continuous chains of failure. We are very close to total bancruptcy at present having lost most of our avenues of loan capital due to the global recession. With 13 days remaining, Georgie is continuing to shovel dirt of our graves having appointed 45 more losers yesterday to longterm positions. America may not last another 13days!!!

    January 7, 2009 10:40 am at 10:40 am |
  5. John in Virginia

    Well it is unfortunate, but the truth is, it will get worse. There is no way out of this mess except to spend money. Hopefully this time it will be spent the right way. The Bush administration squandered so much money by ignoring domestic issues and putting money in things that do not help the average working person. But in all seriousness, there need to be no more bailouts. These corporations are going to have to be allowed to just fail. Then there will be room for small business and other corporations that have shown fiscal responsibility to enter those markets.

    January 7, 2009 10:44 am at 10:44 am |
  6. dave

    Hey, we should be thanking W and co. for building up the military. A few more percentage points of debt to GDP and the dollar will be useless. We'll have to start taking resources by force from people. Who needs a free market when you've got guns?

    Conserving our resources isn't going to help. We need to balance the equation of consumption and production. We can't live like gluttons while everything is being made in third world countries. The ponzi scheme that is the US economy is coming to and end.

    January 7, 2009 10:49 am at 10:49 am |
  7. Strange Change Nobody Could Have Counted On

    Let's add to the debt with a trillion dollar "stimulus" package that Obama and Biden are trying to scare the public into thinking we need.

    January 7, 2009 10:50 am at 10:50 am |
  8. jt

    hahahaha....bush you screwed up pretty badly right, anyway...TGION – Thanks God Its Obama Now and he's gonna fix it whatever it takes, Obama God Bless you Mr President
    Die hard supporter of Obama...

    January 7, 2009 10:53 am at 10:53 am |
  9. Newport News, VA

    Now what are we supposed to do when China and Saudi Arabia want their money now?!?! We are in bad shape and spending 10 billy in Iraq a month is not helping the situation.

    January 7, 2009 10:55 am at 10:55 am |
  10. boered1

    At least Obama has been honest, last night ALL the MSM were complaining that Obama said we will run deficiets in the trillions for at least the next few years. they were all crying about how he is over spending. the facts are BEFORE he gets into office we will be over a trillion in debt, as a country we are BROKE financially and all the tax cuts in the world will not refill our coffers. the facts are banks will not loan the money they have so companies cannot borrow what they need to operate and so they will fail, causing the tax base to decrease even more. the facts are if the people cannot spend money because they cannot get it nor earn it the only entity that CAN is the Government and the only way they can do that is to increase the deficiet. So Obama was correct, he spoke the truth and the MSM has castrated him for it...

    January 7, 2009 10:57 am at 10:57 am |
  11. Mari

    YES........THANKS............BUSH! The Bush Legacy is a legacy of war, torture, lies and debt!

    When Bush took office in January 2001, Clinton had left him a very large SURPLUS........ and Bush is leaving our Nation basically bankrupted!

    How anyone could say Bush was even a 'good' president is insane!

    What a JOKE the whole "surge" argument is! When Bush IS STILL spending ...........$10........BILLION........A MONTH IN IRAQ!

    Where are the far-right-nuts defending their leader Bush?????????

    January 7, 2009 10:57 am at 10:57 am |
  12. Larry in Houston

    This was caused not by only "W'..........But his dad, also.....

    Those Republicans have to be the most egostastical people in the world....

    January 7, 2009 10:58 am at 10:58 am |
  13. carol

    I would rather spend money on getting the economy working again than all these trillions wasted on this trumped up war!!
    The Repubs no doubt will see it as "wasteful spending" where as spending all that money in Iraq was well worth it.....crazy kind of logic there seeing as we have not "won" or have anywhere near a "victory" in anything regarding the war!!!

    January 7, 2009 10:58 am at 10:58 am |
  14. DavidinCA

    ...but let's all feel sorry for those poor poor people who borrowed money they couldn't pay back to buy a house that would make them all kinds of money. For some reason we felt it was necessary to bail out the greedy banks that empowered these greedy borrowers. It's going to be tough explaining this to future generations who are really the ones bailing them out. We are losing our sense of accountability and we will see for years now what a slippery slope that can be.

    January 7, 2009 11:01 am at 11:01 am |
  15. scott

    I wonder when people are going to actually start putting some of the blame on the Democrat controlled congress for this mess. I guess we can start calling the Democrat party, the teflon party, nothing ever sticks to them.

    Now, Obama gets a little critisism for the first time by the press and people are up in arms. lol....... Obama the great can't throw a magic switch and everything is going to be just fine...lol

    Welcome to reality.

    January 7, 2009 11:03 am at 11:03 am |
  16. Pat F

    Note to Democrats blaming Bush: The debt is $1.2 Trillion NOT COUNTING Obama's proposed $1.2 Trillion so-called stimulus package.

    In other words, Bush kept us safe for 8 years for $1.2 Trillion, which debt Obama is now going to DOUBLE overnight in pork and pay-offs that will do nothing but prolong the recession.

    January 7, 2009 11:05 am at 11:05 am |
  17. Changing from Bad to a Disaster

    Spend, spend, spend, spend, SPEND

    Wow, Obama isn't even in office and they're already predicting how much more money he'll spend. What's scary is that predictions are normally LOW.

    January 7, 2009 11:06 am at 11:06 am |
  18. FreeNLovIt

    Spending is GOOD when it is well-spent. If you invest 10 billion and get a 1 trillion back, I say, go for it!!! Clinton invested 50 million and created a 1 trillion surplus or something like that on stimulus package. It's better than spending to spit bullets.

    January 7, 2009 11:08 am at 11:08 am |
  19. RealityKing

    Apparently we are in as dire circumstances as we were in 1932...., NOT!!

    January 7, 2009 11:09 am at 11:09 am |
  20. FreeNLovIt

    To Ray

    You're smart. We have had an window of opportunity to do things right back in October when we bailed out Wall Street. It didnt happen. The banks cashed the checks and slept on them. I wll need to pray.

    January 7, 2009 11:10 am at 11:10 am |
  21. Sue

    Spending is good, only what are we spending with? Is the government just speeding up the printing press for $1000 bills? Doesn't "someone" have to pay for this sometime? Even those who supported the new big/big spender?

    January 7, 2009 11:11 am at 11:11 am |
  22. RealityKing

    Not surprised... This is whats to be expected when democrats are controlling the purse strings of Congress. Add that 1.2 trillion to last years 600 billion and hey! look at that.., 2 trillion in deficit spending since democrats won control of Congress in 2006. Change you can believe in..

    January 7, 2009 11:12 am at 11:12 am |
  23. sammieb51

    Let's keep in mind this budget year started 10/1/08 and this budget was approved by Bush! Let's also be thankful a Democrat is leading the country now - the Republicans can once again become fiscally responsible!

    January 7, 2009 11:12 am at 11:12 am |
  24. FreeNLovIt

    We needed oversight into bailing out Greed Street, I mean Wall Street.

    January 7, 2009 11:13 am at 11:13 am |
  25. FreeNLovIt

    But then oversight STINKS!!! It slows everything down. We need a common sense government that is able to react swiftly by using their God-given BRAINS mixed with reality, instead of laws.

    January 7, 2009 11:14 am at 11:14 am |
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