Twelve things the world should toss out
The Washington Post
Saturday, May 1, 2010
The Congressional Budget Office
by: James Galbraith
The forecasts of the Congressional Budget Office are holy writ in Washington, and they fuel scary headlines about an impending federal debt disaster. This is a shame, because the CBO's projections are indefensible, internally inconsistent and economically impossible.
The CBO predicts that unemployment will fall to near 5 percent by 2014 and stay there. It also expects a rapid recovery in the next few years, followed by a steady 2.4 percent GDP growth rate thereafter. Inflation is expected to stay below 2 percent indefinitely.