WASHINGTON (AP) - New estimates of the White House on Friday predict the budget deficit reached a record $ 1.47 billion this year. The government borrows 41 cents of every dollar it spends.
It's actually a bit better than expected in the administration in February.
The new estimates paint a gloomy picture of unemployment that the economy has been recovering relatively unemployed. The unemployment rate, currently averaging 9.5 per cent, would average 9 per cent next year under the new estimates.
The Office of Management and Budget report has ominous news for President Barack Obama should he win re-election in 2012 - an unemployment rate still high at 8.1 percent. This is well above normal, which is closer to a rate of 5.5 percent to 6 percent. private economists do not think the unemployment rate will fall to this level until mid-decade.
''The U.S. economy still faces considerable difficulties,''the report said OMB. They include tight credit markets, a high inventory of unsold homes and retreat by the governments of states bound by mandates a balanced budget. The European debt crisis has also had an impact.
''Despite these headwinds, the government provides for economic growth and job creation will continue for the remainder of 2010 and increased in 2011 and beyond,''the report said.
The yawning deficits are a growing concern for voters. But Obama and the Democrats control of Congress are mostly taking a pass on the reduction of the deficit this year as they await any recommendations of the Commission's lack of Obama.
Although there is a slight improvement in the deficit for the current year compared to forecasts of the administration in February next year predicts 1.42 trillion dollars next year to $ 1.42 trillion predicted the value of red ink - is 37 cents of the loan for every dollar spent - is looking worse. That's about $ 150 billion more than previously planned because of sagging tax revenue yet.
The current record holder, the deficit was $ 1.41 billion in 2009.
Economists agree that the most important measure of the deficit is contrary to the size of the economy. Opinions vary, but many economists say a deficit of 3 percent of gross domestic product is sustainable because it would help stabilize the overall debt, measured against the economy. http://jodnet.blogspot.com
The report, the deficit to 10 per cent of GDP this year and 9.2 percent of GDP next year. He never reached the figure of 3 per cent under forecast of Obama - the war that costs underestimated and depend on assumptions that tax increases do not materialize.
OMB Director Peter Orszag said the numbers represent une''situation financial needs attention.''
Obama''a done little to deal with this enemy within,''said Rep. Mike Pence, R-Ind. ''Washington is in desperate need of true leadership. We can not continue to postpone difficult choices and sacrifices that are necessary to stop this financial train wreck.''
Deficits have soared since the recession took hold in 2008 and Congress responded with a massive rescue plan of the financial system and 862 billion dollars last year to stimulate.
''What we must do now is to implement policies to reduce the deficit, which will kick in after the economy has more fully recovered,''said the chairman of the Senate Budget Committee, Kent Conrad Dakota North. It is a trajectory''unsustainable.''
------
Jeannine Aversa Associated Press writer contributed to this report.
It's actually a bit better than expected in the administration in February.
The new estimates paint a gloomy picture of unemployment that the economy has been recovering relatively unemployed. The unemployment rate, currently averaging 9.5 per cent, would average 9 per cent next year under the new estimates.
The Office of Management and Budget report has ominous news for President Barack Obama should he win re-election in 2012 - an unemployment rate still high at 8.1 percent. This is well above normal, which is closer to a rate of 5.5 percent to 6 percent. private economists do not think the unemployment rate will fall to this level until mid-decade.
''The U.S. economy still faces considerable difficulties,''the report said OMB. They include tight credit markets, a high inventory of unsold homes and retreat by the governments of states bound by mandates a balanced budget. The European debt crisis has also had an impact.
''Despite these headwinds, the government provides for economic growth and job creation will continue for the remainder of 2010 and increased in 2011 and beyond,''the report said.
The yawning deficits are a growing concern for voters. But Obama and the Democrats control of Congress are mostly taking a pass on the reduction of the deficit this year as they await any recommendations of the Commission's lack of Obama.
Although there is a slight improvement in the deficit for the current year compared to forecasts of the administration in February next year predicts 1.42 trillion dollars next year to $ 1.42 trillion predicted the value of red ink - is 37 cents of the loan for every dollar spent - is looking worse. That's about $ 150 billion more than previously planned because of sagging tax revenue yet.
The current record holder, the deficit was $ 1.41 billion in 2009.
Economists agree that the most important measure of the deficit is contrary to the size of the economy. Opinions vary, but many economists say a deficit of 3 percent of gross domestic product is sustainable because it would help stabilize the overall debt, measured against the economy. http://jodnet.blogspot.com
The report, the deficit to 10 per cent of GDP this year and 9.2 percent of GDP next year. He never reached the figure of 3 per cent under forecast of Obama - the war that costs underestimated and depend on assumptions that tax increases do not materialize.
OMB Director Peter Orszag said the numbers represent une''situation financial needs attention.''
Obama''a done little to deal with this enemy within,''said Rep. Mike Pence, R-Ind. ''Washington is in desperate need of true leadership. We can not continue to postpone difficult choices and sacrifices that are necessary to stop this financial train wreck.''
Deficits have soared since the recession took hold in 2008 and Congress responded with a massive rescue plan of the financial system and 862 billion dollars last year to stimulate.
''What we must do now is to implement policies to reduce the deficit, which will kick in after the economy has more fully recovered,''said the chairman of the Senate Budget Committee, Kent Conrad Dakota North. It is a trajectory''unsustainable.''
------
Jeannine Aversa Associated Press writer contributed to this report.
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