Friday, August 28, 2009

It's magic: raise future growth rates, cut deficits

"The White House projects that GDP will grow by 3.8% in 2011 and climb above 4% a year for the next three years, followed by two years above 3%. This is far higher than historical norms-the economy has not seen such a period of growth since the 1960s.

This is self-serving optimism. By assuming higher economic growth, the forecasters can show more tax revenue and lower estimates of future deficits."

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