The Biggest Flaw In Obama’s Budget
As is typically the case, the White House’s rosy budget projections rely on getting one thing right that they have very little control over:
Mr. Obama’s budget also assumes annual economic growth of more than 4% from 2012-2014. That’s far more robust than anything this recovery has produced so far, and it is at least a percentage point higher than most private economists or the Congressional Budget Office predict.
If real economic growth turns out to be closer to the 3-3.5% range that some economists predict, or lower, than all those rose deficit numbers you’re hearing from the White House are so much nonsense.
H/T: Andrew Sullivan