The US Government Will Accumulate Nearly $12 Trillion Deficit in 10 years

27, 2010 (Hamsayeh.Net) - Tonight at 9pm local time in Washington DC, US President Barack Obama will deliver his annual State of the Union address to the American people.

 

As expected the main focus of his speech should address the state of the US economy and introducing new plans to curb the runaway budget deficit which amounts to $1.4 trillion dollars this year alone. Obama’s economic team when took office introduced a program called TARP, where the government injected over $700 billion into the US economy after the 2008 financial crash.

 

However, reports show that except a well-trenched network of financial bodies and certain related industries, no other Americans benefited from the program. The Obama administration officials named this strange phenomenon a ‘Jobless Recovery!’ that could mean a recovery only for a small group of people.

 

The United States’ economy having a consumer oriented capitalist inner working structure depends on a delicate balance between consumptive and productive forces, and simply if productive forces stay out of the equation the economy should by definition experience a collapse.

 

Obama is expected to announce freeze on some government programs that could save up to $250 billion over the next ten years. But given US government’s ballooning deficit of more than $12 trillion over the same period, such a measure means nil to average people.

 

The official unemployment rate stands at 10 percent, whereas the real unemployment should be closer to 25 percent or 1 out of 4 to 5 potential employees in the US. Also just the other day, US’ largest consumer chain stores company the Wall-Mart announced 11,000 job cuts in its stores across the country. The move indicates that in addition to growing joblessness, American consumers have stopped spending on consumer products.

 

Meanwhile, Wall Street elites and gurus continue to enjoy the pool of money from the TARP program. They have recently announced the end of recession and beginning of a new, more vibrant economic era for the US manufacturing.