Skip to comments.CBO: THE DEFICIT WILL SHRINK MASSIVELY IN COMING YEARS
Posted on 02/05/2013 11:07:51 AM PST by SeekAndFind
The big headline: the CBO expects the U.S. budget deficit to fall to $845 billion this year. This would be the first reading under $1 trillion in five years.
They also estimate that the deficit falls to $616 billion in 2014 and as low as $430 billion in 2015.
They assume unemployment rates of 8.0 percent in 2013 and 7.6 percent in 2014. They also assume GDP growth of 1.4 percent in 2013 accelerating to 3.4 percent in 2014.
Here are the CBO's long-term budget projections:
And here are the economic projections:
Download the full report here.
Below is the CBO's statement:
Economic growth will remain slow this year, CBO anticipates, as gradual improvement in many of the forces that drive the economy is offset by the effects of budgetary changes that are scheduled to occur under current law. After this year, economic growth will speed up, CBO projects, causing the unemployment rate to decline and inflation and interest rates to eventually rise from their current low levels. Nevertheless, the unemployment rate is expected to remain above 7½ percent through next year; if that happens, 2014 will be the sixth consecutive year with unemployment exceeding 7½ percent of the labor force—the longest such period in the past 70 years.
(Excerpt) Read more at businessinsider.com ...
In related news, the CBO is offering beachfront property in Arizona for sale.
These people are seldom correct. This has no value.
Apparently, sniffing unicorn farts has become a requirement to publish a government report.
How can one generate a projected report of a budget outcome, when no budget has been done in 4+ years?
The CBO also claimed that Obamacare would reduce the deficit and would only cost $940,000,000,00 per year. Who would be dumb enough to believe ANY of their predictions after that? They are a thoroughly discredited institution.
$430 Billion is LOW?!!!!
Sure just like Obama will announce his resignation any day now.
Can we hold them to this, and if they are off by 10% ( I am being generous) then get a pledge from every damn Dem to commit seppuku if they are off by over 10% ?
In 2004 they projected we’d be in surplus in 2012.
If this happen all bets off
by preventing the 25 percent cut in Medicares payment rates for physicians that is due to occur in 2014. If, for instance, lawmakers eliminated the automatic spending cuts scheduled to take effect in March (but left in place the original caps on discretionary funding set by the Budget Control Act), prevented the sharp reduction in Medicares payment rates for physicians, and extended the tax provisions that are scheduled to expire at the end of calendar year 2013 (or, in some cases, in later years), budget deficits would be substantially larger over the coming decade than in CBOs baseline projections. With those changes, and no offsetting reductions in deficits, debt held by the public would rise to 87 percent of GDP by the end of 2023 rather than to 77 percent.
Well, heck, if the president and the Democrats socialize the United States, as they plan to do, so that we have a policy of “From each according to his ability, to each according to his needs,” we can eliminate the budget deficit any time.
However, history has proven beyond a shadow of a doubt that communism doesn’t work, and a system of kleptocracy ruins an economy in short order, at the same time as it produces a citizenry which hates its government Masters to promote their own power and privilege.
I agree with this CBO statement completely. It is absolutely correct.
When the economy and dollar collapse and we Zimbabwe-ize, the deficit will tend towards zero. The debt will remain wherever it is on that day - $16 or $17 Trillion or more. Of course, the GDP will be trending to zero as well.
CBO projections are a joke, as they all begin with the marching orders, “Assuming all of our predictions are correct and no unintended consequences ever occur, ...”
How the he11 can they make that kind of call????
Is there something to Keynesian math that makes this possible?
Are they using a fortune teller?
Maybe JJ Abrams is on board with the CBO, and has enlisted a time traveler...
What kind of dope are these people at CBO snorting or shooting or smoking?
Future headline: Deficit Rises Unexpectedly
The year is still young, and Obama has only begun to spend.