Wednesday, September 26, 2012

Test for Obama as Deficit Stays Over $1 Trillion

Four years ago, Barack Obama campaigned for president on a promise to cut annual federal budget deficits in half by the end of his term. Then came financial calamity, $1.4 trillion in stimulus measures and a maddeningly slow economic recovery.
Now, despite small annual improvements, the deficit for the fiscal year that ends on Sunday will surpass $1 trillion for the fourth straight time. Against that headline-grabbing figure, Mr. Obama’s explanation — that the deficit he inherited is actually on a path to be cut in half just a year later than he promised, measured as a percentage of the economy’s total output — risks sounding professorial at best.
The fiscal imbalance on Mr. Obama’s watch, however much a result of economic and demographic factors beyond his control as well as his own policy choices, has increased the nation’s accumulated debt by about 40 percent and has saddled him with one of his biggest vulnerabilities. Facing off against Mitt Romney, Mr. Obama is on the defensive over deficits and debt nearly as much as he is over unemployment.
Dealing with deficits is the one major issue in which voters in polls regularly register more confidence in Mr. Romney than in Mr. Obama. It is also a flash point in the partisan war over the size and scope of government.
Mr. Romney and his running mate, Representative Paul D. Ryan, the chairman of the House Budget Committee, often campaign with digital debt clocks ticking off the rising liabilities. Their television advertisements highlight the issue; one appeals to women about the debt burden being left to their children. 

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