These are the personal views of Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business and former chief economist at the U.S. International Trade Commission:
President Barack Obama’s fiscal 2013 budget projects a fiscal 2012 deficit (that’s the fiscal year ending in September) at $1.3 trillion–up from less than $1.0 trillion a month ago. However, like all presidents with lots of red ink he is promising to dramatically reduce the deficit by the time his successor takes office.
The budget projects a $612 billion deficit in FY2017–if Congress follows the president’s prescriptions to raise taxes on the wealthy and if we buy the president’s growth assumptions.
The budget assumes Mr. Obama will have a second term that astounds economists–his budget assumes 3.9% growth from 2014 to 2017. That is well beyond what most private economists would concede is likely.
If you believe that one, New York Mayor Michael Bloomberg is selling shares in the Brooklyn Bridge.
The author can be reached at firstname.lastname@example.org and followed on Twitter at @pmorici1.