Sunday, March 8, 2009

Top budget official confesses Obama's budget is unrealistic

Obama's top budget official thinks Obama's budget predictions for growth will have to be revised down later this year. He confessed President Obama's budget was unrealistic today in a television interview. Obama's budget assumes the economy will grow at about 3.2%. That will not happen anytime soon. The economy actually seems to be getting worse under Obama's guidance.
Budget chief: 'Economy is weak'

WASHINGTON (AP) — The White House's top budget official declared on Sunday that "fundamentally, the economy is weak" while saying the administration's own financial predictions could need a revision by midyear.

Peter Orszag, President Barack Obama's Office of Management and Budget director, said in television interviews that the economic downturn has been years in the making but cautioned that the new administration was not yet looking at a second economic stimulus package. Orszag said the already-in-place $787 billion stimulus should have a chance to work before officials ask Congress to consider a sequel.

"I don't think we should be chasing our tail, constantly revising assumptions," Orszag said. "Let's see what happens, let it work. We'll have a mid-session review later in the year. We'll have an opportunity to revise the assumptions at that point."

That revision, though, seemed unavoidable.

Obama's budget assumes the economy will grow at about 3.2%. Given climbing unemployment, shrinking credit and a general frustration over a crumbling economy, that now seems unrealistic.(excerpt) read more at

1 comment:

Michael J. Bernard said...

the wheels are going to come flying off the bus quick enough!