February 6, 2013
A COUPLE TWEAKS FROM SURPLUS:
CBO: Deficit Shrinking At Fastest Pace Since WWII As GDP Sputters (Jed Graham, 02/05/2013, IBD)
After a burst of stimulus and financial rescue outlays in 2009, the fiscal retrenchment over the past three years was arguably steeper than at any time since World War II (see chart). Now, with stimulus and bailouts no longer clouding the picture, there's no question that the deficit is shrinking faster than it has in more than 60 years. Based on existing policies, CBO projects the deficit will shrink to 5.3% of GDP in fiscal 2013, down 3.7 percentage points since 2010.Even during the '90s economic boom, the deficit never fell by more than 3 percentage points over any three-year period...
Posted by Orrin Judd at February 6, 2013 8:47 PM