Conservative Daily

Why this year's elections are more important than ever...

The New Normal? 2 Striking CBO Charts on Debt & Unemployment Give Us Clear View of America's Future
Get used to the phrase "the new normal," because it's coming to a country very near to you...

The New Normal? 2 Striking CBO Charts on Debt & Unemployment Give Us Clear View of America’s Future

2,475 Shares By Michael Hausam 17 hours ago

According to a new report just released by the Congressional Budget Office, the future does not look as rosy. Let’s take a look at a few of the graphs in the report and see what conclusions we can draw.
For the next decade, the annual increase in Gross Domestic Product, the best measure of overall activity in the economy, is forecasted to be roughly 2%. If this forecast proves true, it will be the lowest sustained GDP growth level in at least 50 years.

Does it look like this gap ever closes? The U.S. government clearly is not living within the American people’s means.

Also from the CBO report, a chart that looks eerily similar. The unemployment rate for the next decade is forecast to be around 6%.

Although this is one-tenth of one percent lower than the current rate, it’s well higher than the average for the 60 years prior to Obama’s taking office. In the 30 years between 1948 and 1978, there were only 6 years where the rate was at 6% or higher.

Of course, as the deficits remain, the debt increases. The Federal debt was at $16.7 trillion at the end of the fiscal year 2013 and will grow to $26.5 trillion within that decade, a 59% increase. That amount is roughly two and half times the forecast GDP growth during the period.

The “new normal” as Washington politicians would have it? Mediocre economic growth at historically-bad levels, unemployment at historically-bad levels, borrowing costs spiking, increased spending on wealth-redistribution programs, and ongoing government deficits contributing to ever-increasing debt. All as far as the eye can see.

What could change it? Economic policies that encourage greater GDP growth and discourage excessive social-welfare spending. It may not be too late to do something about it, but certainly there is no time to waste. The 2014 elections are coming up – time for people to choose America’s future wisely.