It seems like the federal budget deficit for 2010 will be projected at $1.3 trillion, 9.1 percent of gross domestic product. To put it into perspective, budget deficits are usually 3-4 percent of GDP, which is roughly 1/3 of $1.3 trillion; that equates to $300 billion under normal economic conditions.
Keeping current tax laws and appropriation spending constant, it is forecasted that the budget deficit will be reduced to 4-5 percent of GDP in the next 2 years.
I think the projections are too optimistic given the high unemployment rate.
No comments:
Post a Comment