Economic Effects of Reducing the Fiscal Restraint That Is Scheduled to Occur in 2013

"If the fiscal policies currently in place are continued in coming years, the revenues collected by the federal government will fall far short of federal spending. That gap will grow over time as the aging of the population and the rising cost of health care continue to boost federal spending under current policies. Therefore, putting the budget on a sustainable path will require significant changes in spending policies, tax policies, or both..."

Fiscal Policy Choices in Uncertain Times
Congressional Budget Office Director's Blog, Sept. 19, 2010.
"I’m speaking this afternoon to the Washington Policy Seminar sponsored by the Macroeconomic Advisers forecasting firm. My presentation draws on several reports that CBO has released over the course of this year and emphasizes these points:

CBO and most private forecasters expect that the economic recovery will proceed at a modest pace during the next few years. For example, in the forecast that we completed in early July, the unemployment rate remains above 8 percent until 2012. In addition, the economic data released since we finished that forecast have been weaker than we had expected, so if we were to construct a new forecast today, we would project slightly slower growth in the near term.
Weak economic growth has serious social consequences. About 9½ percent of the labor force is officially unemployed, but many other people are underemployed or have left the labor force. The increase in unemployment is not uniform across demographic groups or regions, with larger run-ups for less-educated workers, men, and people living in certain states. The incidence of unemployment lasting longer than 26 weeks has been the highest by far in the past 60 years. As discussed in our April issue brief, the short-term and long-term impact on people of losing a job during a recession can be very significant..."

Economic_Recovery_Advisory_Board
"We just learned the economy lost another 600,000 jobs last month. It's a staggering number, and it underscores just how deep this crisis is – and, as the President pointed out this morning, it’s accelerating.

That's why he created the Economic Recovery Advisory Board -- to solicit ideas from "beyond the echo chamber of Washington, DC."

"I’m not interested in groupthink, which is why the Board reflects a broad cross-section of experience, expertise, and ideology," he said. "We’ve recruited Republican and Democrats; veterans of government and the private sector; advocates for business and labor. Not everyone is going to agree with each other, and not all of them are going to agree with me – and that’s precisely the point. Because we want to ensure that our policies have the benefit of independent thought and vigorous debate."

Before the President signed the executive order officially creating the board, he addressed the jobs numbers and brought home the individual pains behind those almost incomprehensibly large numbers.."

Press Conference by the President on the Economy
"To help address challenges in the housing and financial markets, we announced temporary steps to help stabilize them and increase confidence in Fannie Mae and Freddie Mac. These two enterprises play a central role in our housing finance system, so Treasury Paulson has worked with the Federal Reserve Chairman Bernanke so that the companies and the government regulators -- put the companies and the government regulators on a plan to strengthen these enterprises. We must ensure they can continue providing access to mortgage credit during this time of financial stress.

I appreciate the positive reaction this plan has received from many members of Congress. I urge members to move quickly to enact the plan in its entirety, along with the good oversight legislation that we have recommended for both Fannie Mae and Freddie Mac. This is a part of a -- should be part of the housing package that is moving its way through the Congress. And I hope they move quickly. The newly proposed authorities will be temporary and used only if needed. And as we work to maintain the health of Fannie Mae and Freddie Mac, we'll work to ensure that they remain shareholder-owned companies..."

U.S. - China Strategic Economic Dialogue Fact Sheets
"The following fact sheets were released today at the conclusion of meeting of the U.S. – China Strategic Economic Dialogue.

REPORTS

* U.S. Fact Sheet
* Joint U.S. – China Fact Sheet
* Joint U.S. – China Fact Sheet on 10-Year Energy and Environment Cooperation Framework"

Fact Sheet: A Clear Agenda for Overcoming Economic Challenges
A series of initiatives illustrating "President Bush's Plan For Continued Prosperity."