CBO also has substantially weakened its outlook for the economy compared to its January report. It now expects 2.3 percent growth in 2011 and 2.7 percent growth in 2012, compared to a January forecast of 3.1 percent growth for the year.It should be even better than 5.3 in 2015 if we have a competent president.
CBO forecasts 8.5 percent unemployment at the end of 2012, when President Obama faces reelection.
The agency’s forecast for the deficit also depends on several dubious assumptions: it expects all of the Bush-era tax rates to expire in 2013, and forecasts a sharp reduction in Medicare payments to doctors, which Congress has never allowed to take effect.
CBO has much rosier forecasts for the middle of the decade, with growth reaching 5.3 percent by fiscal 2015. This is a better forecast than the 3.7 percent growth CBO projected for 2015 in January.
Oh, and by the way, we'll still have record-breaking trillion-dollar deficits.
Change you can believe in.