HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Good Reads (Forum) » Deficit Obsession Has Hur...
Introducing Discussionist: A new forum by the creators of DU

Thu Feb 7, 2013, 03:00 PM

Deficit Obsession Has Hurt The Recovery: CBO

http://tpmdc.talkingpointsmemo.com/2013/02/deficit-obsession-has-hurt-the-recovery-cbo.php

Here’s the buried lede(sic) from the Congressional Budget Office, which on Tuesday released its Budget and Economic Outlook for the coming decade: D.C.’s deficit obsession has been quite effective at cutting deficits at the expense of the still-struggling economy.

“conomic activity will expand slowly this year, with real GDP growing by just 1.4 percent,” according to CBO’s projections. “That slow growth reflects a combination of ongoing improvement in underlying economic factors and fiscal tightening that has already begun or is scheduled to occur-including the expiration of a 2 percentage-point cut in the Social Security payroll tax, an increase in tax rates on income above certain thresholds, and scheduled automatic reductions in federal spending. That subdued economic growth will limit businesses’ need to hire additional workers, thereby causing the unemployment rate to stay near 8 percent this year, CBO projects.”

In other words, intentional efforts to reduce annual deficits and stabilize the debt are working. But if you retrain your gaze from the government’s balance sheet to the real economy, you’ll see the impact of that austerity is fewer people working and slower growth. According to CBO, the recovery won’t really pick up steam until next year, and the economy won’t have recovered until the end of 2017, when it will reach its output potential, and unemployment will fall to 5.5 percent.
(more)

7 replies, 929 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread

Response to Bill USA (Original post)

Thu Feb 7, 2013, 03:14 PM

1. So, according to the CBO and many respected economists

Congress should stop wasting time discussing the deficit, and spend what they need to spend to get people back to work NOW...

Seems I've heard that from lots of sources, but none of them are Republicans.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to AndyA (Reply #1)

Thu Feb 7, 2013, 03:17 PM

2. and very few of "them" are democrats either nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to AndyA (Reply #1)

Thu Feb 7, 2013, 03:50 PM

3. the GOP Corporate media Echo Chamber has done a good job keeping "growth" out of any discussion

concerning this Republican Dystopia (deficit created by Republican reckless policies - Cheney-Bush regime - and recovery sabotaged by Republican reckless political plotting - war on Obama).

Economic Growth Absent From Television Coverage Of Debt Ceiling Debate

http://www.democraticunderground.com/101655015

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Bill USA (Original post)

Thu Feb 7, 2013, 07:39 PM

4. They WANT austerity, yes ?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to blkmusclmachine (Reply #4)

Sun Feb 10, 2013, 01:02 PM

6. And he three things pointed out were all things (D) vehemently opposed at all times.

Allowing the FICA reduction to expire. Oh, wait. That went without a peep.

Increasing taxes on the wealthy. Surely we like growth and objected to that idea. No? My bad. I guess this was a good bit of deficit reduction, even if the CBO (whose conclusion we like) also says austerity limits growth (thus showing we like the conclusion without really noticing the premises it's based on).

Then there's the horrible sequestration, that no true Democrat ever supported. Except for the President and a lot of Congressfolk. Shall we define them as not "true Democrats" or just accept that they are Democrats and, well, supported austerity and limited growth.

I mean, we liked the Afghan draw down and reduced military spending that this would entail. We'd get budget reductions from reducing planned non-spending. It was a point of pride. But when it happened ... it reduced spending and it was all the fault of the (R).

Or perhaps we can just say the CBO is wrong. These things don't constitute "austerity," and so there aren't any real austerity measures passed so far.

Such a muddle. We must be right. That's a given. All we have to do is find a way to spin the facts right.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Bill USA (Original post)

Fri Feb 8, 2013, 01:55 PM

5. That's why the Repukes and their media whores have been crowing about the deficit

they want to sink the recovery. Unfortunately the president also represents the wealthy, and thus spouts the same BS about the deficit instead of fighting FOR jobs and AGAINST cuts. I he would listen to and embrace real economists like Krugman, the whole country, including him, would be better off.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Bill USA (Original post)

Sun Feb 10, 2013, 01:08 PM

7. anybody who demands deficit reduction should immediately be asked:

how much do you want your taxes raised?

which corporate welfare subsidies should we cut?

And so on until they shut the fuck up.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread