There’s a Solution to CBO’s Bad New Fiscal Forecast for America

CNS News | 8/22/2019 | Staff
JimmyJoe (Posted by) Level 3
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The Congressional Budget Office (CBO) just released its new 10-year forecast. Unsurprisingly, it shows that Trump’s reckless spending policy is accelerating America’s descent to Greek-style fiscal profligacy.

Most people are focusing on the estimates of additional red ink, but I point out in this interview that the real problem is spending.

Folks - Fact - CBO - Recession - Fact

Some folks also are highlighting the fact that CBO isn’t projecting a recession, but I don’t think that’s important for the simple fact that all economists are bad at making short-run economic predictions.

That being said, I think CBO’s long-run fiscal forecasts are worthy of close attention (unfortunately, I didn’t state this very clearly in the interview).

Worries - Numbers - Government - Spending - Share

And what worries me is that the numbers show that government spending will be consuming an ever-larger share of the nation’s economic output.

However, it’s not time to give up.

Spending - Restraint - Golden - Rule - Policy

Modest spending restraint (i.e., obeying the Golden Rule of fiscal policy) generates very good...
(Excerpt) Read more at: CNS News
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