- The Bureau of Economic Analysis recently their final view on the annual economic growth in the first quarter of 2015. Although their new forecast showed slightly better economic conditions, their view is that the economy is still contracting. Rather than estimating a .7% contraction in the first quarter, they now estimate a .2% contraction.
- The nation’s whopping trade deficit subtracted 1.9 percentage points off the GDP in the first quarter as export levels are way down and cheaper imports increased. Obviously, as exports drop dramatically, the jobs that rely on exports will become more and more endangered.
- Business investment shrunk by 2%, the worst performance since 2009, indicating that manufacturing jobs will also be difficult.
- The CBO view is a 25 year forecast based on current trends.
- The Investor’s Business Daily concluded that the findings are terrifying with the latest CBO estimate showing a whopping $7.4 TRILLION being added to the current level of $18 TRILLION of national debt.
- If Washington does not change its spending ways, the national debt will almost triple by 2040 to a horrifying $54 TRILLION.
- Since this would put the national debt at multiple times larger the the nation’s annual GDP, it is highly likely the economy and the country will collapse long before the $54 TRILLION level is reached.
- This type of debt will cause Washington politicians to raise tax rates to pay off the ever rising debt which will result in lower economic growth and tax streams which will result in lower tax revenue which will result in higher tax rates…..
- At the same time, as the debt grows out of control, investors of U.S. government debt will require higher and higher interest rates which will also add to larger debt to cover the higher interest rates which will require higher tax rates….
- At some point the majority, if not all, of the tax revenue goes solely to paying interest payments on the debt which eliminates funding needed for defense, infrastructure, human needs, etc.
- A recent inspector general report found that over a ten year period, the Social Security Administration (SSA) overpaid benefits to 44.5% of its beneficiaries.
- “Our review of 1,532 beneficiaries in current pay status as of October 2003 found that over a 10-year period (from October 2003 through February 2014), SSA assessed overpayments for 44.5 percent of sampled beneficiaries.”
- This translates into 4 million beneficiaries getting an extra $16.8 billion from the American taxpayer.
- The SSA did eventually recover $1.8 billion in those overpayments but that amounts to only a little over 10%
- The latest CBO says that repealing Obama Care would boost annual economic growth by an average of .7%.
- If correct, such a boost would get annual GDP numbers back almost inline with historical averages, way above the anemic economic recovery the Obama administration has crafted.
- "CBO has determined what many in Congress have known all along," Republican Senate Budget Committee Chairman Mike Enzi of Wyoming said in a statement. "This law acts as an anchor on our economy by dragging down employment and reducing labor force participation."
- Based on the CBO's most recent economic projections, this additional economic growth amounts to between $100 billion and $200 billion in today's dollars.
- This economic growth is mostly driven by the fact that with Obamacare in place, some people face incentives to work less because they might lose subsidies or credits if their earnings rise. Removing those incentives leads to more hours worked and more jobs.
- Another factor is that repealing some of Obamacare's taxes would cause businesses to invest and grow more.
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