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May 14, 2013 4:49 PM Bad Times For Deficit Hawks

By Ed Kilgore

So back in the real world, Matt Yglesias sums up the recent good news about budget deficits:

The Congressional Budget Office just did a new series of baseline budget deficit projections (PDF) and they’re a lot lower than the old ones. The short-term deficit, in particular, is way lower. We’re looking at a $643 billion deficit for 2013 rather than an $845 billion one. That’s about half higher-than-expected tax revenues and about half higher-than-expected payouts from Fannie Mae and Freddie Mac. In both cases what we’re seeing is that a stronger-than-expected economy leads to a smaller-than-expected deficit.
But they’re also revising the 10-year deficit forecast down by $618 billion, primarily because of the slowdown in health care spending.

I must have missed the blaring MSM news coverage, and also the ticker-tape parade. But then I guess deficits are news only when they are going up.

Ed Kilgore is a contributing writer to the Washington Monthly. He is managing editor for The Democratic Strategist and a senior fellow at the Progressive Policy Institute. Find him on Twitter: @ed_kilgore.

Comments

  • c u n d gulag on May 14, 2013 5:11 PM:

    That good news for the country, is bad news for the Republicans.

    There goes/went their best opportunity to demand cuts to SS and Medicare (even though the former has nothing to do with the deficit).

    Look for the cornered rat(f*ckers)s to get even more vicious, now that they're backed into their final, "Scandal Corner," with three wobbly situations in it, to turn into fodder for the revenge they want on Obama and the Democrats for cornering them - IMPEACHMENT!

  • somethingblue on May 14, 2013 5:20 PM:

    This just proves that austerity is working and we need lots more of it. Bimpson-Sowles!

  • boatboy_srq on May 14, 2013 5:36 PM:

    GOTea POV: But of course the CBO is a propaganda arm of Big Gubmint, telling us all sorts of unreal, impossible data that only benefits the WH, and we don't like that because TABMITWH. Unless, of course, the CBO produces data we like, and then it's infallible.

  • Anonymous on May 14, 2013 5:47 PM:

    All I can say is WTF?!?!?!?!?

    Where is the parade for everybody on this!

  • rrk1 on May 14, 2013 6:28 PM:

    At my weekly curmudgeon breakfast this coming Friday I know I will treated to another round of, "They're cooking the books again. Obama ordered them to lower the deficit projections." I only go to these weekly affairs to test my predictive abilities. So far I'm batting around 800.

    The scandal merry-go-round is being speeded up, and everything from here on in is going to become a scandal until the crazy caucus can gin up enough of a house of cards to begin impeachment proceedings. That will a major distractions, and paralyze Congress totally, which is what the Rethugs want leading up to the 2014 mid-terms.

    It's all so sadly obvious.

  • T2 on May 14, 2013 8:20 PM:

    Come on Ed, you know Obama can't succeed at anything.