The U.S. economy is on track to expand “solidly” this year, but the federal deficit is creeping up again, thanks in large part to a package of tax breaks enacted by Congress last year, officials said Tuesday.
The CBO’s projections often miss the mark, but its mandate is to produce a politically useful number. The admirable Jared Bernstein entirely misses the point in his post about recent critiques of the Congressional Budget Office. Floyd Norris, Zachary Karabell, and Dean Baker have noted how often the CBO gets it wrong, and how it influences policy in damaging ways. […]
Republicans celebrated a new report from the Congressional Budget Office this week that said raising the minimum wage to $10.10 could cost the economy 500,000 jobs. Our Joe Conason hollowed out the arguments the right uses against raising wages for America’s lowest-paid workers. Richard Trumka — head of America’s largest labor union, the AFL/CIO — encouraged […]
Listening to Republicans in Congress wailing incessantly about our spendthrift culture raises a nagging question: What would they do, besides talking, if they actually wanted to reduce federal deficits and, eventually, the national debt? First, they would admit that President Obama’s policies, including health care reform, have already reduced deficits sharply, as promised. Second, they […]
Republicans have seized on a few sentences in a new Congressional Budget Office report that says that while the labor force will continue to grow over the next decade, there will be a reduction in the hours worked because of Obamacare: The reduction in CBO’s projections of hours worked represents a decline in the number of […]
The firestorm in Washington over the deficit and raising the debt ceiling to avert a default is concerning, even nerve-wracking, but the financial community apparently remains more confident than not that an 11th hour deal will be reached and an unprecedented downgrading of U.S. credit avoided. Conversations with financial analysts and industry insiders suggest a […]
Social Security and Medicare will take up ever-larger shares of GDP in coming decades, the nonpartisan Congressional Budget Office indicated today in a report. “The aging of the population and the rising cost of health care would cause spending on the major mandatory healthcare programs and Social Security to grow from roughly 10 percent of GDP […]