CBO Predicts Dreary Economic Outlook


GDP and Potential GDP

The CBO predictions for 2013 are not good. I’m sure it’s Bush’s fault.

Economic growth for 2013 is expected to crawl along at 1.7%. After that it will speed up and unemployment will go down but inflation and interest rates will rise. Seniors will love to hear that.

In 2014, the unemployment will continue over 7%.

If nothing changes in taxation and spending, the budget deficit will go down to $845 billion. The deficit will continue to go down but will then go back up when the healthcare costs increase as our population ages. Obamacare didn’t fix it obviously.

Federal subsidies and accompanying interest rates will grow with rising healthcare costs, increasing the debt and deficit. [Deficits have been over a trillion dollars a year for the last four years and we have not had a budget in 1478 days. No one is at the helm.]

By 2023, if current laws remain in place, debt will equal 77% of GDP and be on an upward path, CBO projects. It could actually rise to 87% under some scenarios.

The report also enumerates the costs and spending over the next ten years. Our government will spend an astounding $47.2 trillion by 2023. Social Security, Medicare, and Medicaid are estimated to cost about $23.58 trillion, growing at 6.7% a year, more than the private sector who pays for these programs.

We have no legitimate prognostications on Obamacare. The unknowns are only now beginning to reveal themselves and, so far, it is all bad news.

CBO is running with the information given to them by the administration, they are counting on sequester, no wars and the economy growing. Garbage in, garbage out.

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