Tag Archives: CBO

CBO Update: Trillion-dollar Deficits to Arrive Two Years Sooner

Tuesday, 10 April 2018 14:16

This article appeared online at TheNewAmerican.com on Tuesday, April 10, 2018:

According to the latest report from the Congressional Budget Office (CBO), released on Monday, the U.S. economy is going great guns. But that growth, no matter how robust, will never catch up with government spending. Hence, despite that growth, annual deficits of a trillion dollars will arrive two years sooner than originally projected.

That previous projection, made by the CBO last June, showed a deficit of $563 billion for 2018, rising to $689 billion next year. Now, with the Tax Cuts and Jobs Act behind them, the CBO projects this year’s deficit to be $804 billion and next year’s to be just a touch below a trillion dollars, at $981 billion.

The CBO is considered by many to be less partisan than most government entities and as likely to create more accurate projections than those coming from the White House’s Office of Management and Budget (OMB). It covered itself with this disclaimer:

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Trump’s Growth Target Reduced to 3 Percent

Tuesday, 18 July 2017 06:09

This article appeared online at TheNewAmerican.com on Monday, July 17, 2017:

Embed from Getty Images

For Mick Mulvaney, President Donald Trump’s director of his Office of Management and Budget (OMB), reality is setting in. On the campaign trail Trump repeatedly promised four percent growth in the GDP (gross domestic product): “We’re bringing it from 1 percent up to 4 percent. And I actually think we can go higher than 4 percent. I think you can go to 5 percent or 6 percent.” (October, 2016). Later that month he doubled down during a speech to an audience in North Carolina: “I’m going to get us to 4 percent growth and create 25 million jobs over a 10-year period.”

Mulvaney’s editorial in the Wall Street Journal on Wednesday was unapologetic: “We are promoting MAGAnomics — and that means sustained 3 percent growth.” This new tag, which incorporates the acronym for “Make America Great Again,” is a play on “Reaganomics” from the 1980s:

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Will Mulvaney Have Any More Success with MAGAnomics than Stockman did with Reaganomics?

Tuesday, 18 July 2017 05:42

This article was published by The McAlvany Intelligence Advisor on Monday, July 17, 2017:

English: Official portrait of US Rep. Mick Mul...

Mick Mulvaney.

After serving in the House as a Republican representative from Michigan, David Stockman served as President Ronald Reagan’s OMB director from January 1981 until he quit 4½ years later in frustration. He got half of Reaganomics passed – the tax reduction part. He failed in getting the other half passed – the government spending cut part.

Mick Mulvaney is now Trump’s OMB Director after serving in the House as a Republican from South Carolina. And his job is likely to be as difficult and frustrating as was Stockman’s.

It’s far too soon to speculate about Mulvaney.

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Robots and Kiosks (and Amazon) are Making Jobs Reports Irrelevant

Saturday, 08 July 2017 05:32

This article was published by The McAlvany Intelligence Advisor on Friday, July 7, 2017:

MarketWatch

MarketWatch

Malcolm Frank is one of those rarest of futurists: He sees what’s coming and writes clearly about what to do about it. In his What to do When Machines do Everything: How to get Ahead in a World of AI, Algorithms, Bots and Big Data, Frank discusses the massive upheavals businesses are going through as they try to keep up and stay profitable.

One issue he doesn’t discuss is how to measure the new economy’s output.

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CBO Raises Its Deficit, Debt Forecasts in Latest Revision

Thursday, 06 July 2017 05:21

This article appeared online at TheNewAmerican.com on Wednesday, July 5, 2017:

The Congressional Budget Office (CBO) just revised its January report with new data on spending, revenues, and economic growth. The revision isn’t good:

The projected rise in [annual] deficits would be the result of rapid growth in spending for federal retirement and health care programs targeted to older people, and to rising interest payments on the government’s debt, accompanied by only moderate growth in revenue collections.

In other words, the CBO simply doesn’t believe that President Trump’s plans to reduce regulation, cut taxes, and repeal ObamaCare will amount to much. Instead the government programs on autopilot — Social Security, Medicare, and especially debt service on the country’s $20 trillion national debt — will eat up nearly 80 percent of the government’s total budget in less than 10 years. Said the CBO:

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ObamaCare is Imploding All by Itself

Tuesday, 28 March 2017 05:37

This article was published by The McAlvany Intelligence Advisor on Monday, March 27, 2017:

The best person to ask about ObamaCare is not the patient, but the doctor. He’s the one carrying the burden: trying to help his patients with one hand while trying to manage the requirements of the state with the other. One who knows is Jeffery Barke, M.D., a 54-year-old family practice physician in Newport Beach, California. He not only predicted the collapse of ObamaCare (ACA) but wrote that it was planned that way:

As ObamaCare’s troubles mount, I’ve heard my patients and my peers in healthcare ask: How could the law’s authors not have seen this coming?

For my part, I think a different question needs to be asked: What if they did? What if ObamaCare was purposely designed to fail?

Every day, it seems like there are a dozen new headlines about the crisis facing ObamaCare. Premiums are rising faster than ever. Meanwhile, health insurance companies are abandoning the law’s exchanges left and right, unable to compete in the top-down, regulation-driven environment created by the law. Less than three years into its implementation, the law has never looked so precarious.

He saw firsthand that ObamaCare never did what it was supposed to do:

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Trump Pick for Management & Budget Talks Raising Retirement Age

Wednesday, 25 January 2017 14:34

This article appeared online at TheNewAmerican.com on Wednesday, January 25, 2017:

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Representative Mick Mulvaney (R-S.C., shown), President Donald Trump’s pick to head up the Office of Management and Budget (OMB), touched the famous “third rail” of American politics during his confirmation hearing on Tuesday. Testifying before the Senate Budget Committee, Mulvaney was pressed hard for his views on Social Security by Senator Lindsay Graham (R-S.C.): “Do you think we need to look at adjusting the [retirement] age yet again because we live longer?”

Replied Mulvaney, “I do, yes sir.”

His response was unsettling to Senator Debbie Stabenow (D-Mich.), who declared,

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Latest CBO Report “Grim”; Offers No Solutions to National Debt

Saturday, 16 July 2016 06:08

This article appeared online at TheNewAmerican.com on Friday, July 15, 2016:

Ida May Fuller, the first recipient

Ida May Fuller, holding the first check from the Social Security Administration

On Tuesday, the Congressional Budget Office (CBO) published its annual report on the country’s long-term budgetary and financial outlook. One need only to see the chart on Page One of the report to see why CBO’s Justin Bogle said the outlook was “grim”: It shows government spending growing so much more quickly than anticipated revenues that annual deficits will likely triple in the next 30 years, if not sooner. Bogle called this scenario unsustainable.

For the first time, the CBO built into its assumptions the projected impact of ObamaCare, the country’s declining birth rate, the explosion of Baby Boomers demanding benefits from Social Security and Medicare over that period, plus Boomers’ increasing life expectancies and the increasing costs of providing them healthcare along the way.

It also assumed that government debt will

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Federal Deficit at Eight-year Low; Don’t Celebrate Yet

Friday, 16 October 2015 10:06

This article appeared online at TheNewAmerican.com on Friday, October 16, 2015:

View image | gettyimages.com

On Thursday the Treasury Department announced that the federal deficit for the 2015 fiscal year, which ended September 30, fell to an eight-year low — $439 billion — thanks to tax revenues that grew at a rate faster than government spending. Revenues, according to the department, grew by eight percent over last year while government spending grew by five percent.

Treasury Secretary Jacob Lew celebrated:

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Pelosi Reacts to CBO Report Before Reading it

Monday, 22 June 2015 10:22

This article was published by the McAlvany Intelligence Advisor on Monday, June 22, 2015:

View image | gettyimages.com

Former Speaker of the House Nancy Pelosi (D-Calif.) was one of the first to react to the report just released by the Congressional Budget Office (CBO) on Friday. She was so quick to comment that there was suspicion she had had no chance to read it. When the details behind the report came out, that suspicion was confirmed.

The House member most responsible for garnering the 219 votes needed in the House in March 2010 to pass ObamaCare – the Affordable Care Act, or ACA – is remembered for her comment made during a 20-minute speech just prior to passage:

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CBO Issues Ambiguous Report on Impacts of Repealing ObamaCare

Monday, 22 June 2015 10:13

This article first appeared online at TheNewAmerican.com on Monday, June 22, 2015:

View image | gettyimages.com

On Friday the Congressional Budget Office, the nonpartisan government agency that is tasked with predicting economic and budgetary impacts of various government programs, issued its analysis of what would happen if ObamaCare (the misnamed Affordable Care Act) were repealed. Its first questionable assumption was that it would be totally repealed effective January 1, 2016.

Its ambiguous, halting, and heavily discounted conclusions served as fodder for the statist media such as CNBC and NBC to warn of huge deficit increases if the socialized medical care program were repealed. NBC headlined a disaster ahead:

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Latest CBO Report shows Deficits Approaching $1 Trillion

Friday, 06 February 2015 05:10

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, February 4, 2015:

When the Congressional Budget Office issued its Budget and Economic Outlook 2015 to 2025 in January, few could be bothered to do a serious review of it as it seemed to contradict the present meme of the Goldilocks economy: job growth accelerating, interest rates low, consumer confidence improving, deficits shrinking, and so forth. Even those taking the time to look at it, scoffed at its conclusions. Said the CBO:

The federal budget deficit, which has fallen sharply during the past few years, is projected to hold steady relative to the size of the economy through 2018.

Beyond that point, however, the gap between spending and revenues is expected to grow, further increasing federal debt … which is already historically high.

The CBO explained why:

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CBO’s Funny Math

Thursday, 23 October 2014 04:14

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, October 22, 2014:

National debt clock

National debt clock

The Congressional Budget Office’s August update to the federal budget and outlook for the next 10 years released last week was so filled with questionable assumptions as to make their conclusions completely unrealistic. As expected, the mainstream media focused only on the parts of the report that fed and supported their worldview. For instance, the CBO said that revenues were expected to increase by about 8% over last year to a world record $3 trillion, thanks to increases in individual income taxes, payroll taxes, and corporate income taxes.

This was understood by the White House and establishment economists to

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National Debt to be $27 Trillion in 10 Years, Says the CBO

Friday, 17 October 2014 05:51

This article was first published at TheNewAmerican.com on Thursday, October 16, 2014:

There was something for everyone in the release last week by the Congressional Budget Office of its August update and outlook. The federal government’s revenues are expected to top $3 trillion this year for the first time in history, thanks to individual income taxes rising by six percent, payroll taxes by eight percent, and corporate income taxes by 15 percent. Those infatuated with big government are celebrating the event as a reflection of an improving economy resuscitated by government spending and stimulus programs. Small government advocates, on the other hand,

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Obama’s New Budget Raises Taxes and Increases the National Debt

Tuesday, 29 April 2014 04:40

OBAMA: COMMUNIST PRESIDENT OF THE UNITED STATES

(Photo credit: SS&SS)

This article first appeared at the McAlvany Intelligence Advisor on Monday, April 29, 2014:

The Congressional Budget Office, in introducing its latest analysis of President Obama’s proposed budget, could just as easily have quoted Robert Welch, the founder of the John Birch Society, who said back in 1974 that the future would bring:

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CBO report: the rich pay most of the taxes while the poor get checks

Monday, 16 December 2013 20:29

Jane Wells, a business news reporter for CNBC, after reviewing the latest report from the Congressional Budget Office (CBO) on who pays income taxes in America, claimed that the rich pay them all. The CBO, wrote Wells, showed that the top 20 percent pay nearly 93 percent of all income taxes, while the top 40 percent

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Deficit down, national debt up, more taxes needed say two “nonpartisan” groups

Tuesday, 17 September 2013 16:13

Two government reports issued in the last few days show that despite higher tax revenues, thanks to the tax increases signed into law by the president earlier this year, deficits are still sky-high and the national debt continues its inexorable climb into the stratosphere.

Although the deficit for the first eleven months of the 2013 fiscal year was down slightly compared to last year at this time, real progress towards a balanced budget remains elusive. Through August the federal government spent

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Another Obamacare Delay Admitted by the White House

Tuesday, 13 August 2013 13:33

On Monday the New York Times quoted an unnamed White House official that another piece of the labyrinthine healthcare law is going to have to be delayed until 2015, which will wind up costing vast numbers of citizens with severe illnesses potentially thousands, perhaps even hundreds of thousands, of dollars. This flies in the face of the promise that President Obama made back in September 2009 that Obamacare

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CBO Cost Estimates on Senate Immigration Bill Celebrated, Challenged

Friday, 21 June 2013 13:43

When the Congressional Budget Office’s cost estimate of S. 744 – the Gang of Eight’s controversial immigration bill – was published on Tuesday, there was celebrating on both sides of the issue. Said Senator Charles Schumer (D-N.Y.), one of that gang and the original sponsor of the bill:

Simply put, this report is a huge

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S&P Issues an Upgrade of US sovereign debt along with a warning

Tuesday, 11 June 2013 12:30

In the announcement by credit rating agency Standard & Poor’s on Monday that affirmed its AA+ rating of United States sovereign debt while revising upward its outlook from “negative” to “stable,” the agency explained that in the short run there has been some perceptible improvement in the country’s fiscal situation but in the long run

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