Thursday, August 27, 2009

Heading to a $14 Trillion 10-Year Deficit?

EconomistMom thinks this is the most plausible scenario (HT Mankiw). According to Concord Coalition's Bob Bixby:
The routine budget process has produced an unsustainable outlook. It is unrealistic to think that this will change without some mechanism to compel consideration of the hard choices that have been ducked in the past. Regardless of the outcome of this year’s health care reform debate, there will be a need to address other contributors to the structural deficit such as Social Security growth and inadequate revenues.
Forget about other so-called "global crises." This is the real McCoy in the making. No millenarianism or speculation, just heightened and transparent government fiscal irresponsibility that started with the previous administration and has become much worse with the current one.

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