CBO projects 2014 balanced budget

Alex Moon · Post by **Alex Moon** » 2004-01-27 01:20am

http://www.cbo.gov/showdoc.cfm?index=4985&sequence=2

The Congressional Budget Office (CBO) projects that under current policies, the federal deficit will total $477 billion in fiscal year 2004 and then decline to $362 billion in 2005 (see Table 1-1). Although that 2004 deficit would be a record in nominal dollars, it would represent a smaller share of the economy--4.2 percent of gross domestic product (GDP)--than the deficits recorded in the mid-1980s and early 1990s (see Figure 1-1). For the 10 years from 2005 through 2014, CBO projects that current policies would produce a cumulative deficit of $1.9 trillion, or 1.3 percent of total GDP over that period.

Shaidar Haran · Post by **Shaidar Haran** » 2004-01-27 01:22am

Yeah, and we know how accurate those predictions are....

Probably another set of smoke and mirrors like the Clinton Administration projections.

KrauserKrauser · Post by **KrauserKrauser** » 2004-01-27 02:17am

Hell even as a conservative I'll believe it when I see it after the recent spending hemorages in teh administration.

Tsyroc · Post by **Tsyroc** » 2004-01-27 07:39am

For some reason I never seem to find it impressive that someone manages to only spend as much as they bring in when they are already a ka-jillion dollars in debt. Not to mention that we know that the US government plays all kinds of accounting tricks that would get people in the business world thrown in jail.

On second hand, maybe all the citizens of the US should demand the right to spend and live like the government. I shall propose for myself a 10 million dollar budget so I can live high on the hog. I think I forsee that by 2069 I will have a balanced budget but in the meantime I have important things to take care of so I need the money now.

GrandMasterTerwynn · Post by **GrandMasterTerwynn** » 2004-01-27 12:56pm

Haha, so what they're saying is that government spending will continue to inflate like the early universe into the foreseeable future . . . it's just that the economy supporting the government is expected to grow at an even greater rate, making the deficit appear smaller and smaller. Except this does nothing about the debt, assumes that two to four Presidential administrations and future congresses will remain static in their spending, and assumes that the economy will still continue to be generally rosy.

In other words, what are they smoking? I want some of that.

Tribun · Post by **Tribun** » 2004-01-27 12:59pm

Yeahr...right.
And I'm the Emperor of old China.....

I don't really know how they got these numbers, but simply using a random number sounds most plausible......

Tsyroc · Post by **Tsyroc** » 2004-01-27 01:02pm

Tribun wrote:Yeahr...right.
And I'm the Emperor of old China.....

I don't really know how they got these numbers, but simply using a random number sounds most plausible......

It generally involves their ass and two hands. One hand to push their heads to one side and the other hand to pull the numbers out.

TrailerParkJawa · Post by **TrailerParkJawa** » 2004-01-28 02:44am

I read a story in todays SJ Mercury News about this. How the hell can you predict what the economy will do in 2014!

They had a graph that showed how we've run a deficit every year for the last 20 years except for something like 2-3 years of the boom.

I was left with the feeling that we should all get used to a lot less gov't services and cut the shit out of spending.

Setzer · Post by **Setzer** » 2004-01-28 05:51am

They're just making sure we have the funds to build EVA 03.

Alex Moon · Post by **Alex Moon** » 2004-01-28 10:22am

TrailerParkJawa wrote:I read a story in todays SJ Mercury News about this. How the hell can you predict what the economy will do in 2014!

Like they said in the report, they took current spending and economic policies and projected their effects on revenues and expenses. Even the report admits that these projections are unlikely. Instead, it's purpose is to help determine the effects of new policies.

They had a graph that showed how we've run a deficit every year for the last 20 years except for something like 2-3 years of the boom.

I was left with the feeling that we should all get used to a lot less gov't services and cut the shit out of spending.

That's been what people are predicting. With the baby boomers reaching retirement in a decade or so, you're going to be looking at rising government expenses everywhere. With the way the system is set up, the only way to cover these expenses will be to either cut benefits, or raise taxes. Probably both.