| | After the failure of President Obama's [[Recovery Summer|Stimulus package]],<ref>[http://www.newsweek.com/2010/10/01/obama-s-failure-of-leadership.print.html Obama’s Failure of Leadership], [[Eleanor Clift]], ''[[Newsweek]]'', 10/4/10.</ref> his entire [[White House]] economic team quit.<ref>[http://www.france24.com/en/20100922-summers-latest-member-obama-economic-team-quit-0 Summers latest member of Obama economic team to quit]</ref><ref>[http://www.dailyfinance.com/2010/11/23/two-white-house-economic-advisers-to-quit/ http://www.dailyfinance.com/2010/11/23/two-white-house-economic-advisers-to-quit/ More White House Economic Advisers to Step Down ]</ref> During the next few years, the deficit was projected to fall somewhat, but if discretionary spending were to stay at the same level, the deficit would not fall enough under President Obama's economic policies to stabilize debt payments. Further, the debt was projected to begin rising more rapidly under Obama's policy because of the rising costs of [[Social Security]], [[Medicare]], and [[Medicaid]]. | | After the failure of President Obama's [[Recovery Summer|Stimulus package]],<ref>[http://www.newsweek.com/2010/10/01/obama-s-failure-of-leadership.print.html Obama’s Failure of Leadership], [[Eleanor Clift]], ''[[Newsweek]]'', 10/4/10.</ref> his entire [[White House]] economic team quit.<ref>[http://www.france24.com/en/20100922-summers-latest-member-obama-economic-team-quit-0 Summers latest member of Obama economic team to quit]</ref><ref>[http://www.dailyfinance.com/2010/11/23/two-white-house-economic-advisers-to-quit/ http://www.dailyfinance.com/2010/11/23/two-white-house-economic-advisers-to-quit/ More White House Economic Advisers to Step Down ]</ref> During the next few years, the deficit was projected to fall somewhat, but if discretionary spending were to stay at the same level, the deficit would not fall enough under President Obama's economic policies to stabilize debt payments. Further, the debt was projected to begin rising more rapidly under Obama's policy because of the rising costs of [[Social Security]], [[Medicare]], and [[Medicaid]]. |
| | In 2011, the Obama deficits were more than half the size of total private savings. Even before President Obama's massive increase in deficits, the national savings rate was insufficient to finance job creation (or "domestic private investment").<ref>''[https://www.hsdl.org/?view&doc=145045&coll=limited The Sustainability of the Federal Budget]'', Congressional Research Service, June 28, 2011, p. 2 pdf.</ref> To sustain large deficits, the economy would require a combination of more private saving (less consumption), lower investment (less job creation), and higher borrowing from abroad. The unsustainability of deficits tends to be triggered rapidly, as no investor wants to be the one still holding the government debt when eventual default or hyperinflation occurs.<ref>''The Sustainability of the Federal Budget'', Congressional Research Service, June 28, 2011, p. 5 pdf.</ref> | | In 2011, the Obama deficits were more than half the size of total private savings. Even before President Obama's massive increase in deficits, the national savings rate was insufficient to finance job creation (or "domestic private investment").<ref>''[https://www.hsdl.org/?view&doc=145045&coll=limited The Sustainability of the Federal Budget]'', Congressional Research Service, June 28, 2011, p. 2 pdf.</ref> To sustain large deficits, the economy would require a combination of more private saving (less consumption), lower investment (less job creation), and higher borrowing from abroad. The unsustainability of deficits tends to be triggered rapidly, as no investor wants to be the one still holding the government debt when eventual default or hyperinflation occurs.<ref>''The Sustainability of the Federal Budget'', Congressional Research Service, June 28, 2011, p. 5 pdf.</ref> |