Congressional Budget Office reports another $1 trillion deficit

But there are some in the corporate world like Caterpillar, Halliburton, and Eaton that take his successes seriously....! They are seeing their bottom lines improve, and they credit Obama.

http://www.politicususa.com/en/obama-industry-economic-confidence

We also have a CBO report that indicates that if the austerity measures wanted by congressional republicans are enacted, that recovery will take longer. Basicly... ending the tax breaks will help the economy and the budget in the long run.

http://tpmdc.talkingpointsmemo.com/2012/01/deficit-cuts-are-about-to-hurt-the-economy-report-suggests.php?ref=fpb

FlyNavy, have you actually ever looked into the CBO model? Their projection on austerity/stimulus is affected by a simple equation that states X money spent = $ increase in GDP. SO no matter what other factors matter, spending = good, spending less = bad. It ignores many of the complex factors in economics. It doesn't even take into account consumer confidence (which is greatly affected by the deficit). If you want to see how wrong this model is, pull up any growth projection of the CBO for any large spending item. They are often off by a factor of 3. Likewise this was the same model that predicted unemployment would stay below 8% given the stimulus.

The CBO even admits the deficiencies in their models! By their account giving, for example, you 1 trillion dollars would raise gdp by roughly 2%. Even if you sit on that money and never reintroduce it... the CBO model says it's a good thing!

Yes, I have read the report, those assumptions are in the very report itself, just TPM doesn't actually do any research into the assumptions. Cato, WSJ, and many many economists do look into the models and say the CBO model is a very very rough guestimate.

I think it's more the republicans scorched earth policy.. kill everything possible to regain power and rule... but of course that couldn't have anything to do with it.... there is always more than meets the eye...

Well Jesse.... Lets just look at it this way. Given that consumer confidence is up... which is key, and corporations like Eaton and Halliburton as seeing improvements in their bottom lines, this should indicate that Obama isn't the wet blanket on the economy that those on the right want Americans to believe. Imagine where the economy would be if the congressional republicans had done ANYTHING to help the American people and businesses.

If you want a replay of 1929, go ahead and proceed with the austerity programs that conservatives endorse.