If stimulus worked, then why isn't it? The US has $1 trillion deficits for four years in a row. If that's not stimulus, what is? Since it isn't working, the next question is how are we going to pay for it?
While pondering those questions, please note US runs a 4th straight $1 trillion-plus budget gap.
The United States has now spent $1 trillion more than it's taken in for four straight years.
On 15 August 2008, the total U.S. public debt outstanding was just over $9.6 trillion (or if you're a stickler for accuracy, $9,606,975,957,798.46). Four years later, on 15 August 2012, the total public debt outstanding for the United States had risen to just over $15.9 trillion (or rather, $15,919,488,010,442.70). In four years then, the U.S. national debt rose by more than $6.3 trillion, or by 65.7% of its value in 2008.
Nice issue brief just released by the Congressional Budget Office. It explains that besides the “gradual consequences” of the gradual worsening of the fiscal outlook, there are these shorter-term risks to the economy:
As previously noted, according to the Congressional Budget Office, if congress sticks by current law the fiscal situation is more-or-less okay for the next 20-25 years. It’s also true that according to the CBO and most everyone you meet, Congress seems unlikely to do that. So the message here should be: “Congress! Don’t live up to your bad reputation!
WASHINGTON: The federal government ran a deficit of $435 billion in the just-completed budget year, the smallest deficit since 2007 and well below the record shortfalls of President Barack Obama's first term, congressional budget analysts said Wednesday. The Congressional Budget Office report says it's the sixth consecutive drop for the deficit, when measured against the size of the economy, since the $1.4 trillion deficit of Obama's first term. The improved deficit figures come as Washington is grappling with the need to increase the government's borrowing cap in early November.
WASHINGTON — Several million people will reduce their hours on the job or leave the workforce entirely because of incentives built into President Barack Obama’s health care overhaul, the Congressional Budget Office said Tuesday.
That would mean job losses equal to 2.3 million full-time jobs by 2021, in large part because people would opt to keep their income low to stay eligible for federal health care subsidies or Medicaid, the agency said. It had estimated previously that the law would lead to 800,000 fewer jobs by that year.