Get a load of this!
As part of the annual budget, the Obama Administration released the underlying economic assumptions too (see Page 13 of PDF)
For GDP, they are forecasting real GDP growth of 2.7% in 2010, followed by 3.8%, 4.3% and 4.2% in 2013.
For unemployment, the forecast is for an average of 10% in 2010, with a decline to 9.2% in 2011, 8.2% in 2012 and 7.3% in 2013
Umnnnhhh.......
Historically, US GDP growth has averaged 1.8%/annum since the Founding. So Obama's "forecast" calls for what will be >200% (average) of the historical average three years in a ROW?
And with THOSE unemployment numbers?
Blue Skies, smilin' at me..........nothin' but Blue Skies........
HT: Calculated Risk
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4 comments:
Actually, these GDP projections are VERY reasonable considering the collapse in output over the last year (GDP growth was well over these projections following the depression of the 30's and the pre-1990's recessions).
....that's the problem.
The administration ADMITS that average GDP growth will be around 3-4% over the next 5 years and yet they're willing to accept this scenario even though this acceptance means that unemployment will remain a major long run crisis.
We need to boost demand NOW. Boost GDP NOW. Get the unemployment situation on better footing sooner rather than later. It can and has been done before.
Well.
The best way to 'boost demand' is to eliminate taxes, both personal and corporate.
Glad you're on board!
Not ture. The Bush tax cuts have cost this country over a trillion dollars over life of the cuts.
While the Bush tax cuts should and will be extended (temporarily) until the private sector can gain it's fotting, cutting taxes in times of relative prosperity is the primary reason we have the budget deficit problem we do.
um - no...
Increasing spending faster than both the rate of inflation and growth is the reason we have the budget deficit problem.
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