Obama 'Recovery' Slows Debt Reduction
The White House has released a little-noticed but concerning bit of information on the economy and our nation’s debt. Known as the “Mid-Session Review,” the report “contains revised estimates of receipts, outlays, budget authority, and the budget deficit for fiscal years 2015 through 2025.” Barack Obama has long made a habit of boasting about reducing the deficit. (When reducing something, it helps to have quadrupled it first.) But The Wall Street Journal notes that the good times might not keep rolling: “First, the good news: Short-term deficits are falling. The Obama administration now forecasts the annual deficit will reach $455 billion this year, down 22% from its forecast at the start of the year and around 6% below last year’s level. The level represents around 2.6% of the country’s total economic output, down from a forecast of 3.2% earlier this year. Moreover, the administration sees the deficit falling another 6% next year to $429 billion, or around 2.3% of gross domestic product. The bad news? Economic growth has continued to underperform expectations. And because the administration’s economists don’t see growth rebounding later to play catch up, the revenue that’s lost to lower growth isn’t going to be recouped in future periods.”
Whereas previous estimates were for 3% and higher economic growth, the new ones are in the 2% range. That’s the rub, isn’t it? Obama’s “stimulus,” regulations and tax hikes were supposed to lead us to the economic promised land. Instead, we got perpetual stagnation, and, compared to past recoveries, this one has no right to be called one.