Reining In Payday Loan Lenders

03/25/2015

Payday Loans

What is a payday loan?

11/6/2013 cfpb.gov

A payday loan – which might also be called a “cash advance” or “check loan” – is a short-term loan, generally for $500 or less, that is typically due on your next payday.

Payday loans generally have three features:

  • The loans are for small amounts.
  • The loans typically come due your next payday.
  • You must give lenders access to your checking account or write a check for the full balance in advance that the lender has an option of depositing when the loan comes due.

Other loan features can vary. For example, payday loans are often structured to be paid off in one lump-sum payment, but interest-only payments – “renewals” or “rollovers” – are not unusual. In some cases, payday loans may be structured so that they are repayable in installments over a longer period of time.

Some ways that lenders might give you the loan funds include: providing cash or a check, loading the funds onto a prepaid debit card, or electronically depositing the money into your checking account.

The cost of the loan (finance charge) may range from $10 to $30 for every $100 borrowed. A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400%. By comparison, APRs on credit cards can range from about 12 percent to 30 percent.

State laws and other factors can influence how much you can borrow and the fees you are charged. Some states do not have payday lending storefronts because these loans are not permitted by the state’s law, or because lenders may choose not to do business in a state rather than abide by the states’ regulations.

There are special protections through the Military Lending Act for active duty servicemembers and their dependents who use certain payday loans and other small dollar credit products.

.

By the Numbers: 400 Percent

Nearly 20 million Americans use payday loans, which offer short-term funds at very high interest rates. Studies have found that the average interest charged on a two-week, $100 loan is about $16—a 400 percent interest rate.

Many people who rely on payday loans are often in desperate need of cash, making them more likely to agree to astronomical interest rates and hefty fees for late payments. But, more often than not, payday loan terms are not clearly explained upfront, if at all. Payday loans end up putting more strain on those who are already struggling financially, including people who have already depleted their resources due to extended unemployment, illness, or emergency, as well as members of the military and their families, who are often targeted by short-term lenders.

Today, the Consumer Financial Protection Bureau, or CFPB, launched the nation’s first program for supervising “non-bank” financial services, an extension of their bank supervision program that began last July. (A non-bank is a company that provides consumer financial services, but doesn’t take deposits or have a bank, thrift, or credit union charter.)

Under this new program, non-banks like payday lenders, as well as private mortgage companies and private education lenders, will be regulated and subject to federal oversight to ensure they play by the rules and don’t take advantage of consumers. CFPB will be able to establish regulations that require payday lenders to disclose borrowers’ obligations and responsibilities in clear, easy to understand terms, so that people know what they are agreeing to when taking out a payday loan.

“This is an important step forward for protecting consumers,” said Richard Cordray, Director of the CFPB. “Holding both banks and nonbanks accountable to consumer financial laws will help create a fairer, more transparent market for consumers. It will create a better environment for the honest businesses that serve them. And it will help the overall economic stability of our country.”

LEARN MORE ABOUT PAYDAY LOANS

.

cfpb Facebook

cfpb Twitter

3/26/15 FACT SHEET: Progress Toward Building a Safer, Stronger Financial System and Protecting Consumers from Unfair and Abusive Practices

3/26/15 FACTSHEET: THE CFPB CONSIDERS PROPOSAL TO END PAYDAY DEBT TRAPS


President Obama hosts a roundtable on the economy
Lawson State Community College, Birmingham, Alabama

March 26, 2015
President Obama delivers remarks on
 loan rates and the economy
Lawson State Community College, Birmingham, Alabama

Obama_Biden_thumbnail


U.S. Treasury’s Hardest Hit Mortgage Assistance Fund – 6th Anniversary

03/20/2015

MakingHomesAffordable-5-Year poster

Making Home Affordable Five Years Later

3/11/2014 By: Mark McArdle, Chief of the Homeownership Preservation Office

Since the launch of Making Home Affordable (MHA) in 2009, Treasury has worked diligently to help homeowners at risk of foreclosure, and stabilize the nation’s housing market.

So far, nearly two million mortgage assistance actions have been provided under MHA to offer relief to struggling homeowners. Treasury’s programs have also changed the way the industry interacts with its struggling borrowers. Many private sector modifications now look a lot like HAMP modifications, with over four million homeowners in private sector modifications benefiting from the framework of the HAMP program.

To date, there have been more than 1.3 million permanent mortgage modifications obtained by homeowners through MHA’s Home Affordable Modification Program (HAMP). Homeowners in HAMP save a median of approximately $544 on their mortgage payments each month, reducing their monthly payments by about a third. This meaningful payment reduction makes HAMP a more affordable and sustainable solution than many other programs in the marketplace today.

Over the last five years, MHA programs have continued to evolve, in response to changing conditions and the needs of the nation’s struggling homeowners. The Home Affordable Unemployment Program (UP) provides temporary relief to unemployed homeowners while they look for another job. Those needing to transition to more affordable housing can access short sales or deeds in-lieu-of foreclosure through our Home Affordable Foreclosure Alternatives (HAFA) program. And, underwater homeowners have received more than $13 billion in principal reduction through HAMP’s Principal Reduction Alternative (PRA) program.

Program changes and enhancements –from the assignment of a Single Point of Contact to the application of a standard modification protocol – have all helped and protected struggling homeowners.  Most recently, Treasury required the largest servicers in HAMP to offer financial counseling to homeowners who have received modifications under HAMP to help them stay current on their mortgage payments.

From launching three national Public Service Advertising campaigns to hosting more than 90 “Help for Homeowners” events, we have looked for ways to raise awareness of MHA and provide homeowners with the information and guidance they need to get in — and stay in — the program. The Homeowner’s HOPETM Hotline (888-995-HOPE), where homeowners can learn if they are eligible for MHA and receive free advice from HUD-approved housing counselors, is always just a phone call away. Not only is this MHA resource available 24 hours a day, but homeowners can get assistance in more than 170 different languages.

While the economy is showing signs of recovery, there are still many families in need of mortgage assistance. Given the continuing need to help these homeowners, MHA has been extended until December 2015.

For more: http://www.treasury.gov/connect/blog/Pages/Making-Home-Affordable-Five-Years-Later.aspx

.

5/30/2013 Obama Administration Extends Application Deadline for the Making Home Affordable Program 

4/05/2013 Obama Administration Releases March Housing Scorecard

11/18/2010 Written Testimony of Chief of Homeownership Preservation Office Phyllis Caldwell Before the House Financial Services Subcommittee on Housing and Community Opportunity

8/11/2010 Obama Administration Announces Additional Support for Targeted Foreclosure-Prevention Programs to Help Homeowners Struggling with Unemployment 

8/04/2010 Obama Administration Approves State Plans For $600 Million of ‘Hardest Hit Fund’ Foreclosure Prevention Assistance

6/23/2010 Obama Administration Approves State Plans for Use of $1.5 Billion in ‘Hardest Hit Fund’ Foreclosure-Prevention Funding 

3/29/2010 Obama Administration Announces Second Round of Assistance for Hardest-Hit Housing Markets

.

2006-2014 homevalues

 “I want to just tell you a quick story. Lorraine Cona, from Sun City, next door, she did everything right. She had a good job as a librarian. She bought a home she could afford. She wanted to retire in that home. She made her payments on time. Then, five years ago, through no fault of her own, she was laid off, and she started falling behind in her payments. She knew foreclosure was coming. She said, “I’d look out the window and I’d see somebody taking pictures of my house.

But when things seemed darkest, Lorraine learned about something called the Hardest Hit fund –- it’s a program that we created to help folks in states like Arizona that had been especially hard hit by the real estate crash. And they helped her make her late payments — because she had a great track record until she had lost her job. They set her up with financial counseling so she could stay on track. It wasn’t easy, but Lorraine repaired her credit. She refinanced her mortgage. And today, after a lifetime of hard work, Lorraine is retired, she’s back to making her payments every single month. She’s in her home. She was able to accomplish that. Even though it was scary at times, she got it done. Lorraine came back, just like Phoenix has come back. (Applause.) Just like Arizona has come back. Just like America has come back.

1/8/15 President Obama on the subject of Housing – Central High School, Phoenix, Arizona

 

.

  The Homeowner’s HOPETM Hotline (888-995-HOPE)
Obama_Biden_thumbnail


Consumer Bill of Rights

03/12/2015

jfk 1962 consumer bill of rights speech

On March 15, 1962, President John F. Kennedy (D) presented a speech to the United States Congress in which he extolled four basic consumer rights, later called the Consumer Bill of Rights. The United Nations through the United Nations Guidelines for Consumer Protection expanded these into eight rights, and thereafter Consumers International adopted these rights as a charter and started recognizing March 15 as World Consumer Rights Day.

Background
Before the mid-twentieth century, consumers had limited rights with regard to their interaction with products and commercial producers. Consumers had limited ground on which to defend themselves against faulty or defective products, or against misleading or deceptive advertising methods.

The consumer movement began to gather a following, pushing for increased rights and legal protection against malicious business practices. By the end of the 1950s, legal product liability had been established in which an aggrieved party need only prove injury by use of a product, rather than bearing the burden of proof of corporate negligence.

Helen Ewing Nelson was a drafter of the Consumer Bill of Rights and sought an outlet for distributing it. During Kennedy’s election campaign he made a promise to support consumers. After his election, Fred Dutton, a colleague of Nelson’s and a government officer who advised the president, asked for Nelson’s suggestions on how the president could support consumers, and she sent him the Consumer Bill of Rights. Kennedy presented those rights in a speech to Congress on March 15, 1962. In that speech he named four basic rights of consumers.

Four basic rights

The right to safety

The assertion of this right is aimed at the defense of consumers against injuries caused by products other than automobile vehicles, and implies that products should cause no harm to their users if such use is executed as prescribed. The right was further formalized in 1972 by the US federal government through the Consumer Product Safety Commission (CPSC). This organization has jurisdiction over thousands of commercial products, and powers that allow it to establish performance standards and require product testing and warning labels.

The right to be informed

This right states that businesses should always provide consumers with enough appropriate information to make intelligent and informed product choices. Product information provided by a business should always be complete and truthful. Aiming to achieve protection against misleading information in the areas of financing, advertising, labeling, and packaging, the right to be informed is protected by several pieces of legislation passed between 1960 and 1980.

Some of the legislation which was made because of the assertion of this right include the following:

The right to choose

The right to free choice among product offerings states that consumers should have a variety of options provided by different companies from which to choose. The federal government has taken many steps to ensure the availability of a healthy environment open to competition through legislation including limits on concept ownership through patent law, prevention of monopolistic business practices through anti-trust legislation, and the outlaw of price cutting and gouging.

The right to be heard

This right has the ability of consumers to voice complaints and concerns about a product in order to have the issue handled efficiently and responsively. While no federal agency is tasked with the specific duty of providing a forum for this interaction between consumer and producer, certain outlets exist to aid consumers if difficulty occurs in communication with an aggrieving party. State and federal attorney generals are equipped to aid their constituents in dealing with parties who have provided a product or service in a manner unsatisfactory to the consumer in violation of an applicable law. Also, the Better Business Bureau is a national non-governmental organization whose sole agenda is to provide political lobbies and action on behalf of aggrieved consumers.

For more: http://en.wikipedia.org/wiki/Consumer_Bill_of_Rights

.

President Obama’s Consumer Rights Actions

May 22, 2009 Credit Card Bill of Rights
President Obama signs the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, marking a turning point for American consumers and ending the days of unfair rate hikes and hidden fees.

Mar 23, 2010 Patient’s Bill of Rights aka ObamaCare
President Obama signed  The Affordable Care Act into law. Six months later, critical consumer protections – a “Patient’s Bill of Rights” – take effect. The Patient’s Bill of Rights puts an end to some of the worst insurance abuses and puts consumers, not insurance companies, in control of their health care.

July 21, 2011 The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector is established. Its jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, other financial companies operating in the United States.

Feb 23, 2012 Consumer Privacy Bill of Rights
President Obama presented a framework for protecting privacy and promoting innovation in the glogal digital economy

Mar 10, 2015 Presidential Memorandum — Student Aid Bill of Rights: Taking Action to Ensure Strong Consumer Protections for Student Loan Borrowers
President Obama proposed a new Student Aid Bill of Rights that outlines a series of new actions that direct the Department of Education, Department of Treasury, Office of Management and Budget, Office of Science and Technology Policy and Domestic Policy Council, working with the Consumer Financial Protection Bureau and the Social Security Administration, to make paying for higher education an easier and fairer experience for millions of Americans.

Obama_Biden_thumbnail


Protect Your Retirement Savings

02/23/2015

Bad Investment Advice due to Conflict of InterestProtect Your Savings

 

What You Need to Know about Retirement “Conflicts of Interest,” in Three Big Sentences:

Today, the President is announcing major actions to update the rules in place to protect you and your retirement savings.

What exactly is a retirement “conflict of interest” and why should you care? Read on for a quick primer. And if you’re really short on time, just skip to the second big sentence to get a sense of what this means to the average American worker.

Want to dig deeper? Take a look at the new report released by the President’s Council of Economic Advisors today, which gives an in-depth breakdown of how these conflicts of interest are hurting the middle class right now.

Under our current system, your advisor can accept a back-door payment or hidden fees for directing you toward a retirement plan that’s not in your financial best interest. And it’s completely legal.

As it turns out, what’s legal is often the worst scandal. Right now, your financial advisor — someone who’s supposed to be acting in your best interest — can direct you toward a high-cost, low-return investment rather than recommending a quality investment that works better for you. That’s because those lower-return investments come along with hidden fees that benefit their Wall Street firms on your dime.

One percent a year may seem small — but you’d be surprised at how quickly it adds up.

Let’s look at an example:

Meet Stella, a 45-year-old worker who is rolling her $100,000 401(k) into an IRA. If she gets conflicted advice from her broker — exactly the kind of advice that’s legal for them to give right now — she could lose an estimated $37,000 by the time she turns 65.

You read that right. That’s $37,000 that would otherwise have been in Stella’s pocket, if not for backdoor payments and hidden fees encouraging her financial advisor to put his interests ahead of hers.

Now, let’s be clear for a second: Many advisors don’t accept hidden fees. They work on a business model that puts their customers’ best interests first. They are hardworking men and women who got into this work to help families achieve their dreams. But how are you, the investor, supposed to know who you can trust? Outdated regulations, loopholes, and fine print make it hard to know the answer to that question.

We’re fixing it by making the system more transparent.

Remember the housing crisis? We already know what happens when outdated policies allow lenders to direct their customers toward bad products. That’s why the President created the Consumer Financial Protection Bureau, a watchdog on the beat to protect Americans from the abusive practices that predated the crisis.

And that’s why we’re taking action to fix the retirement advice market.

Today, the President is directing the Department of Labor to crack down on Wall Street to protect families from conflicted retirement advice. That would kick off a rulemaking process that would require all retirement advisors to abide by a “fiduciary,” or trust standard. In short, that means they’d be required to put their client’s best interest before their own profits.

For more: http://www.whitehouse.gov/blog/2015/02/23/what-you-need-know-about-retirement-conflicts-interest-three-big-sentences

.

February 23, 2015

Remarks by the President at the AARP

AARP
Washington, D.C.
2:05 P.M. EST

THE PRESIDENT: Thank you. (Applause.) It is great to be back here — not just to pick up my AARP card. (Laughter.) I want to thank Jo Ann and everybody at AARP for the work you do every single day on behalf of seniors. I am especially grateful to all of you for the work you’re doing to help us prepare for the White House Conference on Aging, which will be coming up later this year and will cover a whole host of issues, including protecting one of the most critical components of middle-class life, and that’s a secure and dignified retirement. And that’s what we’re here to talk about today.

I want to thank some other people who care passionately about this issue: My energetic, tireless Secretary of Labor, Tom Perez. (Applause.) A couple of outstanding Senators, Cory Booker from New Jersey — (applause) — and Elizabeth Warren from Massachusetts. (Applause.) And Congressmen John Delaney is here — proud of the work he is doing. (Applause.)

So six years after the financial crisis that shook a lot of people’s faith in a secure retirement, the good news is our economy is steadily growing and creating new jobs. Last year was the best year for job growth since the 1990s. And all told, over the past five years, the private sector has created nearly *2 12 million new jobs. And since I took office, the stock market has more than doubled, which means that 401ks for millions of families have been replenished.

America is poised — as long as Washington doesn’t screw it up, as long as we keep the progress going with policies that help and don’t hinder the middle class, no stalemates, no standoffs, no self-inflicted wounds or manufactured crisis — if we stay away from those things, then the projections are that the economy can do very well again this year.

But we’re going to have to choose whether we accept an economy where only a few of us do spectacularly well, or whether we build an economy where everybody who works hard can get ahead, and have some semblance of security in this ever-changing world?

Because while we’ve come a long way, we’ve got a lot more work to do to make sure that the recovery reaches every single American out there and not just those at the top. That’s what I’ve been calling middle-class economics — the idea that this country does best when everybody does their fair share, and everybody gets a fair shot and everybody is playing by the same set of rules.

For more: http://www.whitehouse.gov/the-press-office/2015/02/23/remarks-president-aarp


.

Obama_Biden_thumbnail


Wages Increase the Most in Six Years during Another Strong Month for Job Growth

02/07/2015

The Employment Situation in January

With today’s strong employment report, we have now seen eleven straight months of job gains above 200,000—the first time that has happened in nearly two decades. We are also seeing nominal wage growth exceed the latest inflation readings, but additional steps are still needed to overcome the long-standing challenges affecting wages and family incomes. America is poised for another strong year, and so it is critical to avoid brinksmanship and unnecessary austerity, and instead to make investments in our future growth. That’s why earlier this week the President released a budget proposal that will help hardworking families make ends meet, while boosting America’s productivity and giving workers the tools they need to secure well-paying jobs in the 21st-century global economy.

Private Sector Payroll Jan 2008 - Jan 2015 
FIVE KEY POINTS IN TODAY’S REPORT FROM THE BUREAU OF LABOR STATISTICS

1. The private sector has added 11.8 million jobs over 59 straight months of job growth, extending the longest streak on record

2. The labor force participation rate rose to 62.9 percent in January, and has been relatively stable, on balance, since October 2013—during which time the unemployment rate has fallen by 1.5 percentage point

3. Nominal average hourly earnings for private production and non-supervisory workers have risen 2.0 percent over the last twelve months — implying real wage growth of around one percent, but still below rates needed to overcome the long-standing challenge in this area

4. Consistent with a general pattern of upward revisions during the recovery, job growth in November and December was revised up substantially, and the benchmark revision to March 2014 added 91,000 jobs (on a seasonally adjusted basis)

5. Job growth in a number of industries diverged from recent trends in January

US Job Growth 2012 -  2015

For the entire article: http://www.whitehouse.gov/blog/2015/02/06/employment-situation-january

.

Find Out What President Obama is  Doing to Improve Our Economyhttp://www.whitehouse.gov/economy

Moving-America-Forward_Democrat-party
Obama_Biden_thumbnail

 


Congress do your JOB and fund the Government

02/02/2015

FY2016 Budget logo

“Now, today, I’m sending Congress a budget that will make sure you’ve got what you need to achieve your mission.  It gives you the resources you need to carry out your mission in a way that is smart and strategic, and makes the most of every dollar.  It’s also a broader blueprint for America’s success in this new global economy.  Because after a breakthrough year for America — at a time when our economy is growing and our businesses are creating jobs at the fastest pace since the 1990s, and wages are starting to rise again — we’ve got some fundamental choices to make about the kind of country we want to be.

Will we accept an economy where only a few of us do spectacularly well?  Or are we going to build an economy where everyone who works hard has a chance to get ahead?

And that was the focus of my State of the Union Address a couple weeks ago — what I called middle-class economics.  The idea that this country does best when everybody gets a fair shot, and everybody is doing their fair share, and everybody plays by the same set of rules.

The budget that Congress now has in its hands is built on those values.  It helps working families’ paychecks go farther by treating things like paid sick leave and childcare as the economic priorities that they are.  It gives Americans of every age the chance to upgrade their skills so they can earn higher wages, and it includes my plan to make two years of community college free for responsible students.  It lets us keep building the world’s most attractive economy for high-wage jobs, with new investments in research, and infrastructure and manufacturing, as well as expanded access to faster Internet and new markets for goods made in America.

It’s also a budget that recognizes that our economy flourishes when America is safe and secure.  So it invests in our IT networks, to protect them from malicious actors.  It supports our troops and strengthens our border security.  And it gives us the resources to confront global challenges, from ISIL to Russian aggression.

Now, since I took office, we have cut our deficits by about two-thirds.  I’m going to repeat that, as I always do when I mention this fact, because the public oftentimes, if you ask them, thinks that the deficit has shot up.  Since I took office, we have cut our deficits by about two-thirds.  That’s the fastest period of sustained deficit reduction since after the demobilization at the end of World War II.  So we can afford to make these investments while remaining fiscally responsible.  And, in fact, we cannot afford — we would be making a critical error if we avoided making these investments.  We can’t afford not to.  When the economy is doing well, we’re making investments when we’re growing.  That’s part of what keeps deficits low — because the economy is doing well.  So we’ve just got to be smarter about how we pay for our priorities, and that’s what my budget does.

At the end of 2013, I signed a bipartisan budget agreement that helped us end some of the arbitrary cuts known in Washington-speak as “sequestration.”  And folks here at DHS know a little too much about sequestration — (laughter) — because many of you have to deal with those cuts, and it made it a lot harder for you to do your jobs.

The 2013 agreement to reverse some of those cuts helped to boost our economic growth.  Part of the reason why we grew faster last year was we were no longer being burdened by mindless across-the-board cuts, and we were being more strategic about how we handled our federal budget.  And now we need to take the next step.  So my budget will end sequestration and fully reverse the cuts to domestic priorities in 2016.  And it will match the investments that were made domestically, dollar for dollar, with increases in our defense funding.

And just last week, top military officials told Congress that if Congress does nothing to stop sequestration, there could be serious consequences for our national security, at a time when our military is stretched on a whole range of issues.  And that’s why I want to work with Congress to replace mindless austerity with smart investments that strengthen America.  And we can do so in a way that is fiscally responsible.

I’m not going to accept a budget that locks in sequestration going forward.  It would be bad for our security and bad for our growth.  I will not accept a budget that severs the vital link between our national security and our economic security.  I know there’s some on Capitol Hill who would say, well, we’d be willing to increase defense spending but we’re not going to increase investments in infrastructure, for example, or basic research.  Well, those two things go hand in hand.  If we don’t have a vital infrastructure, if we don’t have broadband lines across the country, if we don’t have a smart grid, all that makes us more vulnerable.  America can’t afford being shortsighted, and I’m not going to allow it.

The budget I’ve sent to Congress today is fully paid for, through a combination of smart spending cuts and tax reforms.  Let me give you an example.  Right now, our tax code is full of loopholes for special interests — like the trust fund loophole that allows the wealthiest Americans to avoid paying taxes on their unearned income.  I think we should fix that and use the savings to cut taxes for middle-class families.  That would be good for our economy.”

2/2/15 Exceprts from President Obama’s 
remarks on the FY2016 Budget

Each year, after the President’s State of the Union address, the Office of Management and Budget releases the Administration’s Fiscal Year budget, offering proposals on key priorities and newly-announced initiatives. This year, we did things a little differently, from our expanded and enhanced State of the Union coverage to our interview with YouTube creators — and we wanted to do the same with the budget.

That’s why we’re releasing all of the data included in this year’s budget in an easy, machine-readable format on GitHub, a website for hosting open-source repositories. The budget process should be a reflection of our values as a country, and we think it’s important that members of the public have as many tools as possible at their disposal to review the President’s proposals — and to have an opportunity to give feedback. And, if you’re motivated to create your own visualizations or products from the data, you can do that too.

Explore the budget in a new way:

SEIU - GOP Congress should fund the Govt

GOP holds security hostage to immigration

February 1, 2015 By Washington Post Editorial Board

HOW FAR will Republicans in Congress take their reckless flirtation with undermining government this time?

Will they, as seems increasingly likely, fail to pass a bill that the president can sign ensuring adequate funding for the Department of Homeland Security and its 280,000 employees before the agency’s support expires Feb. 27? Are they ready to let funding lapse, secure in the knowledge that Border Patrol officers, Secret Service agents, airport security personnel and other so-called essential employees would still have to report to work — even though they would not be drawing paychecks?

A number of prominent Republican lawmakers clearly believe that denying funding to the nation’s premier organ of domestic security is no big deal, as long as the move expresses the GOP’s anger about President Obama’s executive actions on immigration.

For more: http://www.washingtonpost.com/opinions/gop-holds-security-hostage-to-immigration/2015/02/01/55776ae8-a8d3-11e4-a06b-9df2002b86a0_story.html

Obama_Biden_thumbnail


US Deficit $1.4 trillion in 2009 reduced to projected $468 billion in 2015

01/26/2015

CBO: Deficit Shrinks To Lowest Level Of Obama Presidency

The deficit was a whopping $1.4 trillion in fiscal year 2009, when Obama took office.

“The federal budget deficit, which has fallen sharply during the past few years, is projected to hold steady relative to the size of the economy through 2018,” CBO concluded. “Beyond that point, however, the gap between spending and revenues is projected to grow, further increasing federal debt relative to the size of the economy—which is already historically high.”

The primary long-term fiscal challenges are spending under Social Security, Medicare, Medicaid, Obamacare and net interest costs, CBO said.

Under estimates based on current tax and spending laws, the budget office projects that the economy “will expand at a solid pace in 2015 and for the next few years.”

The CBO projected that Obamacare spending on coverage provisions will be 7 percent — or $101 billion — less over a decade than last April’s forecast. The federal government is projected to spend $76 billion in 2015 and $1.35 trillion from 2015 to 2024 under the health care law to broaden insurance coverage.

 13-drivers-of-long-term-deficits

9-causes-of-deficits-since-2001

 

Learn more about President Obama’s Plan for the US Economy:  http://www.whitehouse.gov/economy

Opportunity for All: The President’s Fiscal Year 2015 Budget Overview: http://www.whitehouse.gov/omb/overview

For more charts and graphs of the US Economy: https://www.cbo.gov/sites/default/files/cbofiles/attachments/49892-Outlook2015.pdf

Obama_Biden_thumbnail


Follow

Get every new post delivered to your Inbox.

Join 323 other followers