25 March 2009

Get me some of the rose-colored glasses!

The CBO is once again screaming (in a nice, polite, rational kind of way) that the Administration's projections of real GDP and annual deficits, over the next ten years, are too high and too low respectively. Last week, the CBO released it's revised estimates of the President's budget proposals. The graph below shows a much larger than expected estimate of deficit-spending resulting from the budget proposal:
You can access the accompanying PDF here.

Now the CBO has released an analysis of the real GDP under the budget proposal. A key point made in the director's blog is:
  • CBO’s projection of real GDP is lower than that of the Administration throughout the next 10 years
While the CBO office still advocates stimulus spending, it has consistently assessed the actual legislative proposals as having a moderate detrimental impact. These figures possibly explain the current push by the Administration to promote its budget and tax proposals, and why Congressional members and the public alike are becoming concerned about the long-term impact to the country's economic stability and strength.

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