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The CBO's economic outlook

Wednesday, August 22, 2012   (0 Comments)
Posted by: Matt Gruhn
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The link below will take you to a report to Congress by the non-partisan Congressional Budget Office on projections of the economy for the remainder of 2012 and 2013.

It is an interesting report. It makes projections based on two scenarios, one where the federal budget deficit is reduced by austerity to about $600 billion from $1 trillion today and the other that the budget deficit remains at current levels.

Under the first case, the CBO predicts an economic recession and 9-percent unemployment. Talking heads on Wall Street go further and predict a "severe" recession because of reductions in federal spending. Under the second scenario, the CBO predicts a slowly declining unemployment rate and a gradual economic recovery. Sounds like a report reared by an economist. What to believe?

Nevertheless, I thought you might like to read what was sent to all Congressional offices. Click here to read it.

Larry Innis
MRAA Legislative Affairs