From Friday’s All Stars.
On the CBO’s new deficit projection:
These numbers are completely out of control. When the administration speaks about healthcare, energy, and education, and deficit reduction, it is like an SAT question in which of these series is wrong? You can’t have the first three and have deficit reduction.
The word is that were those introduced in the Reagan era, which is “structural deficit.” The Obama administration gave the impression that because of a steep recession, it will do stimulus, a temporary increase in expenditure, a temporary increase in the deficit, a temporary boost in spending, and then all of it will revert.
But, in fact, it builds in, with healthcare, with the energy program, and with education, all of these incredibly ambitious ideas which essentially make America into a European-style social democracy.
They are hugely expensive here, as in Europe, and it explodes the deficit. And what the CBO is showing is simply how the numbers work out.
As Fred indicated, these numbers are astronomical even if you accept the absurdly high estimates of growth that the Obama administration has offered.