Right Thinking From The Left Coast
Don't stay in bed, unless you can make money in bed. - George Burns

Monday, March 21, 2011

The $2 Trillion Oops

Do you ever get the feeling these guys don’t really know what the fuck they’re doing?

When dealing with the massive spending levels of the federal government, a small rounding error can add up to big money. Now it looks like the amount of debt President Obama’s budget will generate in the coming decade will be $2.7 trillion more than expected. Oops.

The Congressional Budget Office (CBO) on Friday updated its analysis of the government’s red ink and found the fiscal hole deeper than expected. “For the 10-year projection period as a whole, the deficit that would result under the President’s proposals - $9.5 trillion, or 4.8 percent of GDP - would be $2.7 trillion greater than the cumulative deficit projected under current law,” CBO’s report explained.

Now I’m being unfair.  They do know what they’re doing—lying.  The disagreement is because the Obama people assume we will have a good economic decade, which is unlikely in the era of Dodd-Frank and Sarbanes-Oxley.  They also have new spending—another doc fix and transportation spending—to be paid for by unspecified bipartisan revenue somethings.  This is the inverse of the “starve the beast” theory—ramp up spending and expect revenue to simply be there.  And today we have news that Obama intends to sit out the entitlements debate.

Posted by Hal_10000 on 03/21/11 at 01:00 PM in Politics   Law, & Economics  • (0) TrackbacksPermalink
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