The Obama economy is weaker than the previous forecast and the worst is yet to come. According to the Congressional Budget Office (CBO), the country could fall into recession if there isn’t a year-end deal to prevent income tax hikes and spending cuts that amounts to half-a-trillion dollars.
Douglas Elmendorf, CBO Director, puts the economy in perspective, in saying, “The magnitude of the slowdown we’re discussing next year is significant. At 7.3 percent of gross domestic product, this year’s deficit will be three-quarters as large as the deficit in 2009 when measured relative to the size of the economy.”
Put simply, the CBO report says that the President’s inability to encourage job growth is one of the main reasons why the budget deficit will amount to more than $1 trillion for the fourth year in a row. In fact, this federal deficit will be 73 percent of gross national product by the end of the fiscal year.
What the report also reveals is that the unemployment rate under Obama will remain above 8 percent until the end of year, considering the fact that for July, unemployment rates has risen in 44 US states – suggesting that people should give up hoping for employment under Obama.
The report also points out that the economic future of the country cannot be decided, for the long-term because of the President’s policies being anti-growth, anti-capital investment, anti-business and anti-wealth creation.
Finally, it also compares the stunning growth in the fourth year of Ronald Reagan’s presidency to Obama’s record in the same period, and considers the latter’s policy to raise taxes on the business community in a crippled economy to be insane.