The report notes that debt held by the public will reach 73 percent of the economy this year, “the highest level since 1950 and about twice the 36 percent of GDP that it measured at the end of 2007.” [The Hill]
IF THE LAST CBO report doesn’t wrench the political debate back from the dregs of abortion politics we’re doomed. At least that’s the prediction of CBO Director Doug Elmendorf.
Under the current-law baseline, the deficit next year would shrink to $641 billion.
This assumes that a series of policies known as the fiscal cliff take place. They include automatic spending cuts triggered by the August 2011 deal to raise the debt ceiling; expiration of the Bush-era tax rates; a sharp cut in Medicare doctor payments; and the failure to index the Alternative Minimum Tax for inflation, which would raise taxes for many households.
The $641 billion budget deficit estimate is larger than the $585 billion deficit CBO had projected in January.
[...] Democrats last month threatened to let the nation go over the fiscal cliff unless Republicans agree to a “balanced” deficit package that includes some tax increases. The GOP has so far doubled down on its insistence that a deficit solution include only cuts to non-defense social spending.
Next stop, a “deep recession,” according to today’s report.
The Dems should already have up and running spots pointing out the repugnantklan/teabagger domestic terrorist tactic of crashing the economy unless the 1%….THEIR 1% gets to pay even LESS then the historically low taxes they do, WHEN they do now.
The problem isn’t taxes.
Most people I know really don’t mind if their taxes are raised as long as the money isn’t wasted, as it historically has been.
The problem is the government will spend it rather than using it to cure the deficit.
Male bovine fecal matter…the problem IS taxes. The 1% don’t pay squat and the corporations pay even less. As for spending there are LOTS of things to cut…the Military, corporate welfare, handouts to oil companies, hand outs to agricorporations.
Money spent on domestic programs is a pittance compared to the gazillions flushed down those rat holes.
I have little confidence that, even if the election does focus on the economy, that we’ll get anything but attack ads and sound bites, and that the follow-through by whoever is in the WH will do little to change the Grand Bargain type actions.
In spite of all the tough talk by the Senate Democrats, Obama is already uttered that dreaded word compromise, thereby, encouraging and enabling the Republicans.
He will never, ever learn.
Thanks for finding the slide show, Taylor. Must admit I don’t understand some of the things I’m seeing there, but that’s nothing new.
Take a look at slide 6, though. Our economic growth has been slowing for the last two years. I predict it’s going to slow a lot more, because nothing the government is talking about doing is going to help.
I could care less about deficits right now. Money is cheap. In fact, it’s free as far as the federal government is concerned. Spend it on something useful, and they can keep right on spending until we get near full employment. They should be putting a $ trillion or more into stimulus spending right now, and instead they’re wasting money on blowing up other peoples’ countries, and getting ready to blow up more peoples’ countries.
I think your prediction is right, Cujo359. I saw that, too.
EXACTLY. It’s just so fricking infuriating.
Any progressive politician worth his/her salt would KNOW this in their political bones.