Author Topic: CBO estimates Obama 2013 budget will hurt economic growth by 0.5-2.2%  (Read 3209 times)

Fury

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CBO estimates Obama 2013 budget will hit economic growth

The nonpartisan Congressional Budget Office said Friday that President Obama’s 2013 budget will hurt the economy in the long term, arguing the larger deficits it would produce would reduce the amount of capital available to businesses.

After five years, the CBO says, the Obama proposals would reduce economic output by between 0.5 percent and 2.2 percent.

Larger deficits caused by the budget would cause the government to issue more bonds, sucking up private capital to finance its debts and thereby reducing the funds businesses could use to expand and hire, the CBO said. An increased tax on capital gains included in the president's plan would also tend to reduce private capital, it says.
The 2013 Obama budget proposes continuing the Bush tax rates for the middle class and enacting elements of a short-term Jobs Act stimulus. In the near term, actions such as these could increase growth by as much as 1.4 percent, CBO says.

The new CBO report complements a March estimate that Obama’s budget would add $3.5 trillion to deficits over 10 years compared to current law. That report did not try to capture any effects on economic growth.

The White House, using a different baseline than CBO, has claimed its budget would reduce deficits by $3.2 trillion over 10 years.

Taking economic effects into account, Obama’s budget could add as much as $3.9 trillion in deficits by 2022, CBO estimates. Slower economic growth tends to increase deficits by reducing tax collection and increasing spending on items like unemployment insurance.

In analyzing the Obama budget's effect on deficits and economic growth, the CBO compares it to a "current law" baseline that assumes large deficit reduction from, for example, allowing all of the Bush tax rates to expire and doctor payments from Medicare to be slashed.

Congress is unlikely, however, to allow all of the Bush tax rates to expire, because Obama and lawmakers in both parties want to extend the Bush rates for households with annual income less than $250,000. Republicans want to extend all of the Bush rates, or to lower tax rates.

Similarly, Congress has regularly enacted a "doc fix" to prevent cuts to physician Medicare payments.

The White House emphasized the baseline issue in its reaction to the report.

"CBO is using a current law baseline, which is not considered to be an accurate reflection of the fiscal picture," a senior official at the Office of Management and Budget said.  The official emphasized that compared to a more realistic baseline, the Obama budget helps growth.

"In addition, under CBO’s estimates of what would happen if we continued business as usual, the economy would be worse off if we did not pursue the Administration’s economic growth and deficit reduction policies," the official said.

Under the current law baseline, CBO estimates tax hikes and spending cuts would hurt growth in the short term. But by shrinking deficits, it would help economic growth in the long run, the CBO says.

Republicans seized on the new report.

“CBO’s report confirms what millions of Americans already know from experience: the president’s failed policies impede job creation, stifle economic growth, and ensure a diminished future,” House Budget Committee Chairman Paul Ryan (R-Wis.) said in a statement.

"It’s official: President Obama’s idea of a ‘balanced approach’ leads to an unstable economy," said Speaker John Boehner (R-Ohio). "This CBO report confirms the president’s policies will hurt long-term job creation and economic growth, and proves we have to do everything possible to stop Washington from spending money it doesn’t have, get control of our debt, and get government out of the way."

http://thehill.com/blogs/on-the-money/budget/222767-cbo-sees-obama-budget-reducing-growth-in-long-term


What say you, Obama drones?

Soul Crusher

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Re: CBO estimates Obama 2013 budget will hurt economic growth by 0.5-2.2%
« Reply #1 on: April 20, 2012, 12:53:59 PM »
This thug and ghetto creep is INTENTIONALLY TRYING TO COLLAPSE AMERICA

dario73

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This just in. Romney cut a gay hippy's hair. FORTY SEVEN YEARS AGO!!!

GigantorX

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Straw Man

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This thug and ghetto creep is INTENTIONALLY TRYING TO COLLAPSE AMERICA

did someone promise to buy you an ice cream cone if you made that exact same statement 10,000 times?

tonymctones

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did someone promise to buy you an ice cream cone if you made that exact same statement 10,000 times?
did someone promise you they would pay for your house and gas if you voted for obama?

bazinga

Straw Man

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did someone promise you they would pay for your house and gas if you voted for obama?

bazinga

nope - know one ever told me that

can't you ever stop with the gay stalking ?


Shockwave

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did someone promise you they would pay for your house and gas if you voted for obama?

bazinga

Zing!

tonymctones

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nope - know one ever told me that

can't you ever stop with the gay stalking ?


hahah hi pot, my name is kettle!!!

Straw Man

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Zing!

really

you too?

It's not like 333 hasn't said that same idiotic line about 8000 times now


Straw Man

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hahah hi pot, my name is kettle!!!

you don't really understand the concept of saracasm or even irony

maybe you should stick to bragging about your homework and your brilliant foresight in the financial markets without having the balls to ever put some money on the line

Shockwave

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really

you too?

It's not like 333 hasn't said that same idiotic line about 8000 times now


It was just well timed, and made me lulz.
Well placed for the conversation.

tonymctones

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you don't really understand the concept of saracasm or even irony

maybe you should stick to bragging about your homework and your brilliant foresight in the financial markets without having the balls to ever put some money on the line

LOL butt hurt much?

if you dont understand the concept of a good natured joke maybe you should stick to bragging about your employment in finance(while never giving any insight on finance, nature of your work or any knowledge of finance)

or perhaps we can just name words for you to define for fun eh?

;)

tonymctones

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It was just well timed, and made me lulz.
Well placed for the conversation.
LOL exactly, apparently I hurt his butt...

Straw Man

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It was just well timed, and made me lulz.
Well placed for the conversation.

fair enough but,  in point of fact, 333 says that line everyday, often multipe times a day, for the past 3 years, yet I've never ever said that Obama was going to pay my bills so the comparison makes no sense......which is par for the course for young Tony

Straw Man

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LOL exactly, apparently I hurt his butt...

nope

just trying to find a scrap of relevance in your post


tonymctones

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fair enough but,  in point of fact, 333 says that line everyday, often multipe times a day, for the past 3 years, yet I've never ever said that Obama was going to pay my bills so the comparison makes no sense......which is par for the course for young Tony
nope

just trying to find a scrap of relevance in your post
Goodfuckingness you ignorant dullard...

remember this video?



I was making a joke, get over yourself

Straw Man

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Goodfuckingness you ignorant dullard...

remember this video?



I was making a joke, get over yourself

Tony - have I ever said that?

No I have not which was my point

If you're going to make a comparison to 333's stupid comment (which he's said mulitiple times a day for 3 years) then it would make sense that you would find some similar commnet from me and not a comment from someone else which I have never said

for example, I have no recollection of you ever talking about Obama trying to collapse the nation so if I made my comment on this thread to you instead of 333 it would make no sense because you've never said it

do you get it now ?

swing and a miss

it's not about getting over myself it's that your joke sucked

do you even know how jokes work?

you didn't even get the gay stalker reference which is YOUR Line (well yours and your apparent  hero 333)

tonymctones

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IT WAS A FUCKING JOKE!!!

LMFAO are you serious?

hahahhahahahahahahah

Straw Man

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IT WAS A FUCKING JOKE!!!
LMFAO are you serious?

hahahhahahahahahahah

if it makes no sense then it's hard to call it a joke but....ok

maybe that just your particular style of humor

GigantorX

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Oh man, this thread certainly went off the rails....