2010 State of the Union address: on Budget & Economy

Barack Obama: The worst has passed, but the devastation remains

But the devastation remains. One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. And for those who'd already known poverty, life has become that much harder.

This recession has also compounded the burdens that America's families have been dealing with for decades--the burden of working harder and longer for less; of being unable to save enough to retire or help kids with college.

So I know the anxieties that are out there right now. They're not new. These struggles are the reason I ran for President.

Barack Obama: We all hated the bank bailout; but it was necessary

But when I ran for President, I promised I wouldn't just do what was popular--I would do what was necessary. And if we had allowed the meltdown of the financial system, unemployment might be double what it is today.

So I supported the last administration's efforts to create the financial rescue program. And when we took that program over, we made it more transparent and more accountable. And as a result, the markets are now stabilized, and we've recovered most of the money we spent on the banks. Most but not all.

To recover the rest, I've proposed a fee on the biggest banks. I am not interested in punishing banks. I'm interested in protecting our economy.

Barack Obama: $1T avoided Depression; but I took office with $8T debt

Just stating the facts. Now, if we had taken office in ordinary times, I would have liked nothing more than to start bringing down the deficit. But we took office amid a crisis. And our efforts to prevent a second depression have added another $1 trillion to our national debt. That, too, is a fact. I'm absolutely convinced that was the right thing to do.

Barack Obama: Restore Pay-As-You-Go law

Now, I know that some in my own party will argue that we can't address the deficit or freeze government spending when so many are still hurting. And I agree--which is why [the proposed 3-year spending] freeze won't take effect until next year--when the economy is stronger. That's how budgeting works.

But understand, if we don't take meaningful steps to rein in our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our recovery--all of which would have an even worse effect on our job growth and family incomes.

Rather than fight the same tired battles that have dominated Washington for decades, it's time to try something new. Let's invest in our people without leaving them a mountain of debt. Let's meet our responsibility to the citizens who sent us here. Let's try common sense. A novel concept.

Barack Obama: FactCheck: Obama's estimate of $8T deficit is closer to $3T

Obama: "In 2000, America had a budget surplus of over $200 billion."

FactCheck: Fiscal year 2000 ended with a total budget surplus of $237 billion.

Obama: [By 2009] "a one-year deficit of over $1 trillion."

FactCheck: Deficit when Obama took office: CBO projected the deficit would total $1.2 trillion.

Obama: [By 2009, we had] "projected deficits of $8 trillion over the next decade."

FactCheck: CBO projected only a $3.1 trillion deficit over 10 years.

So the president actually understated matters regarding annual surpluses and deficits for years past, but he may have strained the facts when he spoke of what was being predicted for future years. His figure is based on a "baseline" projection by Obama's own OMB projecting a 10-year deficit of $8.9 trillion.

Bob McDonnell: $100K debt per family is unsustainable: limit government

The President's partial freeze on discretionary spending is a laudable step, but a small one. The circumstances demand that we reconsider and restore the proper, limited role of government at every level.

Without reform, the excessive growth of government threatens our very liberty and prosperity. In recent months, the American people have made clear that they want government leaders to listen and act on the issues most important to them. We want results, not rhetoric.

Bob McDonnell: FactCheck: No, Obama won't double debt; only 55% increase

That's an outdated Republican talking point that failed to account for the most recent Congressional Budget Office report released a few days ago. CBO's latest figures show the public debt increasing from $7.5 trillion at the end of fiscal year 2009 (which ended Sept. 30) to $11.6 trillion in 2014 and $14.3 trillion in 2019. That's an increase of about 55% in five years and 91% in 10 years, far less than the doubling and tripling of which McDonnell spoke.

McDonnell is even further off the mark if counting what's called the "gross" debt, which includes money the government owes to itself, chiefly in IOUs held by the Social Security trust funds. CBO's latest report shows the gross debt at $11.9 trillion for 2009, and expected to rise to $16.7 trillion and $20.6 trillion. That figures out to be increases of 40% and 73%.

Bob McDonnell: FactCheck: Yes, federal debt is over $100,000 per household