Saturday, August 04, 2012

The pathway to even bigger budget deficits - In "The President's rosy scenario", Professor Greg Mankiw takes note that the Administration is estimating economic growth way out of line with the majority consensus of economists.  It's like depending on a big raise at work and spending the anticipated money now: "Of course, the Administration's optimistic forecast feeds directly into its budget projection.  If we get the slower growth that private forecasters predict, we will get less tax revenue and larger budget deficits than the Administration projects."


eirik said...

Spending your raise before you get it? Wasn't that a part of the plot of "Christmas Vacation"? Does that make Obama Clark Griswald?

Wallace W. World said...

When it comes to "Vacation" analogies, Barack Griswald has a much, much better "dog on car" record than Mitt Griswald.