February 6th, 2014

How the Obama Administration, Congress, and the Keynesians Gutted the Budget

Economics & Politics

The new Congressional Budget Office outlook for 2014-2024 makes for grim reading. While the budget deficit is temporarily down to around 3 percent of GDP, this has been achieved by budget cuts that are gutting the capacity of the federal government to address our nation’s economic, social, and environmental needs. And the situation gets worse in future years. The discretionary government programs fall to their lowest share of GDP in a half-century (Figure 1); the deficit and debt as a share of GDP begin to rise again; and health outlays continue to rise.

There is blame to go around on all sides. Yes, the Republicans have been intransigent in their opposition to higher revenues. But who was it that campaigned in 2008 to make the Bush era tax cuts permanent for all but the top 2 percent of households? And who was it that signed the Fiscal Cliff agreement in January 2013 (after an election victory) to make the tax cuts permanent for all but the top 0.5 percent of households? That was President Obama.

Read the full article at the Huffington Post


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