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The CBO expects the deficit for 2013 to shrink $845 billion from a peak of $1.4 trillion. Much of the deficit is automatic stabilizers, which will rise slightly in 2013, to 2.5% of GDP due to weakness in the economy, which is caused in part by the fiscal tightening and sequestration that is occurring in calendar year 2013. Automatic stabilizers accounts for about half of the estimated deficit this year. Those stabilizers will remain at 2.5 percent of potential GDP in 2014, accounting for roughly three-quarters of the projected deficit in 2014.
After 2014, the projected effect of automatic stabilizers on the budget deficit shrinks steadily, dropping to 0.2 percent of potential GDP in 2017 and about zero in 2018. In 2018 and beyond, CBO projects that output will equal its potential, so the automatic stabilizers will have essentially no effect on the budget.
Pesky facts and economic fundamentals....dang, another foot in backside of the drama queens and fearmongers at GOPTbag HQ in the Faux News Building.
You're confusing the deficit with the debt.
They are 2 different (though related) things.
The debt is still rising but the deficit is falling. If and when the deficit falls to zero and becomes a surplus, then the debt will begin falling too.
Ken
The minute that happens, republicans will be screaming Tax Cuts!!!!! Then pin the shortfall on the next democrat.
And I objected to those deficits then, just like I do now. But to pretend $250B deficits under Bush comes even close to the $1.5T ones we've been experiencing under Obama, so we should celebrate one thats $1T, is utter stupidity..
But here ya are..
Wait, you just whined and cried over a $250B deficit, now suddenly $1T ones are ok..
what a hypocrite..
I'm no fan of Bush nor Obama but I'll defend either when needed; Obama wasn't the one who had the first trillion dollar deficit in fact it was Bush who had the largest deficit in this countries history. Our debt isn't a bad thing but we need to bring it back down to sustainable levels while creating jobs to increase revenues. I don't think anyone should be advocating to pay down the debt completely and in fact some economists say that budget surpluses for a govt isn't a good thing, of course I don't subscribe to that non-sense but nonetheless debt can be a good thing. America is one of the few countries on the world that may never need to see a budget surplus to remain succesful which is crazy to imagine, but it really all depends on GDP growth; if we can keep GDP growth higher than the percentage of the budget deficit we'd never need to see a surplus again but how likely is that? I don't know.
from your link "Such high and rising debt later in the coming decade would have serious negative consequences: When interest rates return to higher (more typical) levels, federal spending on interest payments would increase substantially. Moreover, because federal borrowing reduces national saving, over time the capital stock would be smaller and total wages would be lower than they would be if the debt was reduced. In addition, lawmakers would have less flexibility than they would have if debt levels were lower to use tax and spending policy to respond to unexpected challenges. Finally, a large debt increases the risk of a fiscal crisis, during which investors would lose so much confidence in the government’s ability to manage its budget that the government would be unable to borrow at affordable rates"
Gee, sounds like we might want to continue to reduce our Debt.
So libbies, tell me why this CBO statement is wrong, and that rising debt is a good thing
Obama got it right! Revenues are up on the recovery and a small tax increase on the wealthiest Americans. The deficit is declining and the economy is getting stronger exactly as the "liberal" economists said it would.
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Oh oh -- that Deficit just keeps ...
