New CBO Report Exposes Biden’s Deficit-Reduction Misinformation – By Eric Boehm (Reason) / May 27, 2022
The president is trying to claim credit for falling deficits. Actually, his administration has overseen a $2.4 trillion increase in the long-term deficit.
By the time inflation comes under control sometime next year, the federal budget deficit will be ballooning once again—and on course to hit $2 trillion annually by the end of the decade.
The new economic and budgetary outlook released by the Congressional Budget Office this week forecasts steady if unspectacular economic growth for the next 10 years, falling inflation rates, and climbing budget deficits. The report projects that “the current economic expansion continues, and economic output grows rapidly over the next year.” But the government continues to spend more than it collects in tax revenue, driving annual budget deficits to $1.7 trillion by 2028 and $2.3 trillion by the end of the 10-year budget window in 2032.
The number-crunching agency expects inflation to fall to 4.7 percent by the end of this year and keep tumbling to 2.7 percent by the end of 2023 (only slightly higher than the Federal Reserve’s long-term goal of 2 percent). That’s good news for consumers, though it suggests that relief from 40-year-high inflation rates might not arrive as soon as many would like. The bad news is that the CBO expects economic growth to fall along with inflation: from 3.1 percent this year to a mere 1.5 percent by 2024.
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