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According to the CBO, the Obama 2013 budget would slow economic growth

Allbiz - PWCM - JLA 2012/04/21 14:39:31
Slow the economy from it's already glacial pace? Sounds like recession to me.

The nonpartisan Congressional Budget Office said Friday that President Obama's 2013 budget will hurt the economy in the long term, arguing the larger deficits it would produce would reduce the amount of capital available to businesses.

After five years, the CBO says, the Obama proposals would reduce economic output by between 0.5 percent and 2.2 percent.

Larger deficits caused by the budget would cause the government to issue more bonds, sucking up private capital to finance its debts and thereby reducing the funds businesses could use to expand and hire, the CBO said. An increased tax on capital gains included in the president's plan would also tend to reduce private capital, it says.

The 2013 Obama budget proposes continuing the Bush tax rates for the middle class and enacting elements of a short-term Jobs Act stimulus. In the near term, actions such as these could increase growth by as much as 1.4 percent, CBO says.

The new CBO report complements a March estimate that Obama's budget would add $3.5 trillion to deficits over 10 years compared to current law. That report did not try to capture any effects on economic growth.

The White House, using a different baseline than CBO, has claimed its budget would reduce deficits by $3.2 trillion over 10 years.

That "different baseline" used by the White House assumes growth over 3% for next year -- and good luck with that, Barry, if you get it. With signs the economy is actually slowing, the effect may be even worse than the CBO projects.

The economic ignoramuses who are running the government need to be replaced before real growth in the economy will return.

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Opinions

  • Striker 2012/04/23 01:49:59
    Striker
    +1
    The whole Keynesian fallacy that Government can muddle with the economy and make it better is disproved by every recession / depression we have ever seen. Every tinker makes another dam!

    And what Obama budget? We're still running without one, 3 years now. I had thought that is illegal,
  • mchappell2 2012/04/21 19:44:39
    mchappell2
    +2
    Obama is a Moron
  • Striker mchappell2 2012/04/23 01:50:30
    Striker
    +2
    LOL, we knew that!
  • mchappell2 Striker 2012/04/23 13:36:39
    mchappell2
    +2
    I wanted to use foul and unacceptable language, but I just let it go at that
  • Striker mchappell2 2012/04/23 14:22:57
  • Kane Fernau 2012/04/21 18:21:45
    Kane Fernau
    +2
    Obama really cares about the economy. If the economy improves Capitalism wins, he can't have that
  • Temlakos~POTL~PWCM~JLA~☆ 2012/04/21 14:44:06
    Temlakos~POTL~PWCM~JLA~☆
    +1
    That's what Obama wants! He has shown that. A man does not make mistakes like those that Obama has made, over and over and over.

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2014/11/24 08:12:59

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