“During an economic downturn like we’re experiencing the deficit gets elevated which is not only natural, it’s beneficial because it helps bring the economy back up to the potential output level. In other words, the key problem we face right now is the gap between how much the economy could produce and how much it is producing. The whole point of the Recovery Act is to fill in that gap and part of that means a temporary elevated deficit.”
White House Budget Director
February 26, 2009
White House Budget Director Peter Orszag told Neil Cavuto today:
“We need some shared sacrifice” and “elevated deficits are beneficial”:
Well, if “elevated deficits are beneficial” it’s a good thing…
Cuz we got a whopper right now:
CBO chart via RedState
Is it a surprise that 59% of Americans believe government is the problem?
UPDATE: Obama proposed $989 billion in new taxes over the course of the next 10 years in his budget today.