The Economic Result of Big Government Thinking

Posted by Tina

CBO predictions are based on projections made given current law; at best they can act simply as indicators to guide for decision makers. Our President and our decision makers haven’t been very effective over the past five years. The fruits of their poor management are now in:

CBO is far more pessimistic about the long-term fiscal picture than it was last year. Where it predicted a gradual decline in publicly held debt over the next 25 years in its 2012 report, it now expects national debt to reach 100% of GDP by 2038, on its way to 250% by 2088. (It was 39% when President Bush left office.)

And after a couple annual declines, deficits start rising again, reaching 6.5% of GDP by 2038, which is higher than any year between World War II and Obama.

The CBO admits that such long-term forecasts are highly uncertain. But if anything, the results will be worse, since the budget office simply assumes, for example, that ObamaCare’s costs don’t explode and that all its dubious cost-cutting measures actually work.

Both are unlikely.

While the CBO largely blames the decision to extend most of the Bush tax cuts for the worsening long-term budget outlook, its own numbers make clear that out-of-control spending is the real culprit.

According the report, federal revenues are on track to hit 20% of GDP by 2038, which is well above the average of 17.4% over the past four decades.

We need legislators and a president with serious leadership qualities who are dedicated to reforming social programs, eliminating duplicate programs, fraud and waste, eliminating unnecessary departments and creating a sound fiscal budget.

That is the goal even if it takes seventy years!

This is why there is a shrinking middle class and job opportunities are few and far between.

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