New figures from the Congressional Budget Office (CBO) confirm the ongoing negative economic impact of Obama-era policies such as the Affordable Care Act, the Dodd–Frank Act, controls on energy production and transport, and Keynesian stimulus spending.
In an update to its annual Budget and Economic Outlook yesterday, the CBO projects lower gross domestic product (GDP), lower wages and salaries, and reduced retirement income for Americans in the years ahead.
According to CBO’s updated outlook, recent GDP growth has not met its previous projections, and the economy simply isn’t recovering as fully as it has from past recessions. This lower growth will have a significant impact on long-run economic growth and incomes. Compared to its February 2014 outlook, CBO now projects that GDP will be 0.8 percent (or $1.8 trillion) lower over the 2015–2024 period. Wages and salaries will be 1.0 percent (or $1 trillion) lower.
For a median-income family making $50,000 a year, CBO’s downward revision to wages and salaries amounts to a loss of $4,500 over the next 10 years. But it won’t just be working-age Americans who will have less income. CBO also projects that retirement incomes for older Americans will be smaller due to lower interest rates and lower stock returns.
In short, the CBO report describes an economy on the wrong track. Federal spending and debt are out of control. Federal taxes, regulations, and crowding out of resources are hampering economic growth and preventing the private sector from flourishing. What the nation needs instead are policies that reduce government interference and allow the private sector the freedom to drive job creation and long-run economic growth.