Saturday, April 14, 2018

Alan Longbon — Good News: The CBO Reports The Federal Government Deficit Will Be Larger Than First Thought And Go On For Decades

Summary
  • Contrary to mainstream opinion the CBO report is a positive result.
  • The CBO finds that higher deficits will lead to higher and faster GDP growth and employment.
  • The governement deficit is the private sector surplus and while the private sector balance remains positive and grows the likelihood of a stock market crash or recession is low.
The purpose of this report is to show the finding of the latest CBO about the Federal deficit is a good thing and should be celebrated. To produce this report an analysis of the national accounts will be used and a sectoral balance model constructed after the work of British economist Professor Wynne Godley.
First a quick review of the newly released Congressional Budget Office report.…
MMT-friendly.

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Good News: The CBO Reports The Federal Government Deficit Will Be Larger Than First Thought And Go On For DecadesAlan Longbon

1 comment:

Matt Franko said...

""CBO estimates that the 2018 deficit will total $804 billion, $139 billion more than the $665 billion shortfall recorded in 2017."


Oh now its down to $804B from over a $T... uh oh!!!