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The Truth Behind Obama’s Numbers

by @ 11:35 am on February 28, 2009. Filed under Barack Obama, Economics, Politics

A reader at Andrew Sullivan’s place points out the absurdity of Obama’s deficit reduction projections:

I see in Table 8.8 of the budget that the White House assumes real GDP growth of 3.2% in 2010, 4.0% in 2011, 4.6% in 2012 and 4.2% in 2013. I leave it to your imagination what the deficits would be if they had made more realistic assumptions.

Considering what we learned about the GDP yesterday, I would suggest that we take those projections with more than just a grain of salt.

One Response to “The Truth Behind Obama’s Numbers”

  1. Vern McKinley says:

    Milton Friedman used to say that the bounceback from a recession is analogous to a rubber band. The farther you pull it down the stronger the bounceback. That was why the recovery from the double dip 80, 81-82 recessions was so strong because the contraction was pretty severe. So the question is when will the economy bounce back? Given the monetary push behind it I would not be surprised by a strong bounceback, but obviously there are concerns on the inflation side if that happens.

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