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A new CBO report has some sobering news about the economy, unemployment and the long term debt, but there may also be a silver lining for the American people.
The federal deficit will approach $1.1 trillion this year, congressional budget analysts said Tuesday, down substantially from the worst days of the Great Recession.
The nonpartisan Congressional Budget Office said the gap between government spending and tax collections would narrow even more dramatically in 2013 unless lawmakers head off controversial changes in tax policy and government spending that are now on the books.
What does that mean? To put it simply, President Obama can insure that the debt and deficit is reduced by at least $6.8 Trillion over the next decade by doing absolutely nothing.
How is that possible you might ask? Well the Bush tax rate reductions, which President Obama has already extended once, will expire at the end of 2012 and by simply refusing to sign another extension President Obama will reduce the debt deficit over the next decade by $5.4 Trillion
Additionally, by refusing to sign legislation to delay or stop the “triggered” cuts put in place by the failure of the Special Select Committee on Debt and Deficit, will reduce the debt and deficit by an additional $1.2 Trillion over the next ten years.
So by doing nothing President Obama can really do a lot.
These changes, slated to take effect in January, would increase taxes for virtually every American and make deep cuts at the Pentagon and other federal agencies
The down side of the report is that unemployment looks to be on a steady increase for the remainder of 2012, not a good thing for the Obama reelection campaign but apparently the reality we will be facing.
Unemployment, which has drifted down to 8.5 percent, could rise to 8.9 percent by this fall and jump back up to 9.2 percent by the end of next year, the CBO said.
So since the President and the Congress have been able to do so little by addressing the debt and deficit, perhaps what we need to ask them to do in 2012, is nothing.
the new CBO report underscores how little progress President Obama and Republicans in Congress made toward solving the nation’s biggest budget problem
And past history would indicate that doing nothing is something they do very well.
Your comments, counterpoints and remarks are welcome and appreciated.
