Monday, February 14, 2011
No US deficit reduction for two years
Posted by David Smith at 07:00 PM
Category: Thoughts and responses

The White House has published its budget proposals, which are for a $3.7 trillion budget (spending) and a $1.6 trillion budget deficit this year, 10.9% of GDP. Growth is assumed to reduce this to 7% of GDP next year but deficit-reduction measures do not kick in until 2013, and then in fairly mild form. This is a true Transatlantic contrast. These tables, while not the easiest to read, are interesting.