Congressional Budget Office

CBO Predicts a Hangover of Economic Proportions

By on 7.16.14 | 4:43PM

According to the CBO, the Clairvoyant Bureaucratic Office, “federal debt will be growing faster than GDP, a path that would be ultimately unsustainable.” Our national debt is already bigger than our economy.

The key source of upward pressure on the federal debt is expanded federal spending in the form of Obamacare, its gluttonous siblings Medicare and Medicaid, and its senile cousin Social Security. Because of government encroachment into the health care industry, health care spending will double over the next twenty-five years to 14 percent of GDP.

In order to stop the Social Security trust fund from defaulting and return to sustainable levels of unfunded liabilities by 2025, future and current Americans will have to incur a 25 percent cut in their benefits.

The CBO hearing had the tone of a doctor’s appointment for a self-destructive addict. The doctor says, “You know you can’t keep overspending like this, America,” and the government nods sheepishly and then scampers off to print more money.

Menzie Chinn Joins Me in Nihilism

By on 12.3.09 | 3:11PM

I take Menzie Chinn's second attack on me as a compliment, as his blog Econbrowser is probably the most sophisticated economics blog extant and has been one of my favorites and a daily read for about two years now. But I fear for Econbrowser, because Dr. Chinn has established that I am a nihilist, while at the same time endorsing all my claims, which inescapably leads me to conclude that he, too, is a nihilist.

Let's approach Dr. Chinn's latest broadside, "Politico Joseph Lawler Goes Nihilist," piece by piece:

Be afraid, be very afraid...again. From Joseph Lawler

On “Jobs Created or Saved” and the CBO

By on 12.1.09 | 5:37PM

Yesterday the CBO released, as mandated by the American Recovery and Reinvestment Act (ARRA, the stimulus bill), an analysis commenting on the reports filed by recipients of stimulus funds. I have argued in the past that interpretation of such analyses is difficult, and that the Obama administration's public interpretations have not demonstrated a corresponding level of exactitude.