Obama has now made me understand what the hope is all about. I'm not sure his budget proposal is anything but a unbelievable hope for the future. Obama unveiled a $3.8 trillion budget proposal that needs $1.3 trillion of borrowed money in 2011. The plan will raise taxes on high income individuals and businesses to raise $970 billion and $400 billion, respectively. Now for the shocking part:
The White House budget proposal released Monday assumes the U.S. economy is heading for a six-year run of above-average economic growth with no sign of a worrisome spike in inflation or interest rates...
...It expects six consecutive years of strong growth ranging from 3.2 percent to 4.3 percent — well above what most economists consider the longer-term trend of around 2.6 percent.
The last time the economy saw a similar streak of strong growth was in the late 1990s, during the dot-com boom. Obama has said both that expansion and the housing-powered growth in the mid-2000s were bubble-driven, and he wants the next expansion phase to rest on sturdier pillars...
...The budget forecast reflects a 3.8 percent five-year average. (CNBC)
So raising taxes and overwhelming the loanable funds markets translate into above-average growth. Hope indeed, hope indeed.
Obama Budget Based on Hope
Obama has now made me understand what the hope is all about. I'm not sure his budget proposal is anything but a unbelievable hope for the future. Obama unveiled a $3.8 trillion budget proposal that needs $1.3 trillion of borrowed money in 2011. The plan will raise taxes on high income individuals and businesses to raise $970 billion and $400 billion, respectively. Now for the shocking part:
The White House budget proposal released Monday assumes the U.S. economy is heading for a six-year run of above-average economic growth with no sign of a worrisome spike in inflation or interest rates...
...It expects six consecutive years of strong growth ranging from 3.2 percent to 4.3 percent — well above what most economists consider the longer-term trend of around 2.6 percent.
The last time the economy saw a similar streak of strong growth was in the late 1990s, during the dot-com boom. Obama has said both that expansion and the housing-powered growth in the mid-2000s were bubble-driven, and he wants the next expansion phase to rest on sturdier pillars...
...The budget forecast reflects a 3.8 percent five-year average. (CNBC)
So raising taxes and overwhelming the loanable funds markets translate into above-average growth. Hope indeed, hope indeed.
