Associated Press: Obama’s Plans For Rescuing The Economy “Don’t Look Good”
You know it’s bad when even the Associated Press is piling on Obama’s nonsensical plans for the economy.
In its budget, the administration predicted the economy will shrink by 1.2 percent this year but snap back and grow by a solid 3.2 percent in 2010. That would be followed by even stronger increases of 4 percent in 2011, 4.6 percent in 2012 and 4.2 percent in 2013.
By contrast, the consensus of forecasters surveyed by Blue Chip Economic Indicators this month predicted the GDP will fall by a larger 1.9 percent this year and then increase at weaker rates of 2.1 percent in 2010, 2.9 percent in 2011 and 2012 and 2.8 percent in 2013.
The administration needs GDP growth in the 4 percent-plus range for successive years to be able to make its budget math work add up.
It defends its projections as based on a belief that the president’s various recovery steps, including the recently passed $787 billion economic stimulus bill, will lead to a fast recovery.
So, basically, Obama is saying that he can pay down the nation’s budget deficits and fuel the spending-on-steroids he has planned once the tax revenues from his “economic stimulus” bill start rolling in as the economy returns to growth. The problem? The only one who thinks the “stimulus” will result in the sort of growth Obama needs is Obama himself. Everyone else is projecting GDP growth rates that are about what half of what Obama is projecting.
What Obama is building is a house of cards. If his “stimulus” bill doesn’t work (and it won’t) he’s going to be plunging this nation into massive amounts of debt that can only be paid off by more tax burden on the economy. More tax burden that will, ultimately, make it even harder to attain economic expansion and the sort of federal tax receipts that will help pay down the debt and deficits.
