Monday, March 08, 2010

Congressional estimates show grim deficit picture - Yahoo! News

Congressional estimates show grim deficit picture - Yahoo! News: "The nonpartisan Congressional Budget Office predicts that Obama's budget plans would generate deficits over the upcoming decade that would total $9.8 trillion. That's $1.2 trillion more than predicted by the administration.

The agency says its future-year predictions of tax revenues are more pessimistic than the administration's. That's because CBO projects slightly slower economic growth than the White House.

The deficit picture has turned alarmingly worse since the recession that started at the end of 2007, never dipping below 4 percent of the size of the economy over the next decade. Economists say that deficits of that size are unsustainable and could put upward pressure on interest rates, crowd out private investment in the economy and ultimately erode the nation's standard of living."

And it seems that the electorate is now thinking about the deficit as a major issue. It took Ross Perot to put that issue out front in 1992 because the major parties didn't want to talk about it. But now the federal budget deficit, and debt in general, have become mainstream concerns--not that our politicians seem to be doing anything about it...

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