Deficit surges

Remember this?

Looks like the CBO was right:

Mirroring the unprecedented red ink flowing from America's deep recession, the deficit for the current budget year will rise by $89 billion to $1.84 trillion -- about four times the record set just last year.

The budget also reflects the costs incurred for the Wall Street bailout, President Barack Obama's economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in.

Now, for those who counter that this is necessary in the context of the current recession let's remember that Ronald Reagan encountered a similar recession shortly after taking office that featured considerable problems in the financial sector and an unemployment rate that peaked at 10.8 percent. Nevertheless, under his watch the deficit at the time never exceeded 6 percent of GDP. The economy went on to recover nicely and Reagan was overwhelmingly re-elected in 1984.

The current deficit, meanwhile, clocks in at over 13 percent of GDP (13.84 trillion). It's unjustifiable.

Update: Government spending is now 40 percent of the economy.