By Robert Romano
“This is nothing more than Obama’s economic humbug, just in time for the holidays,” remarked Americans for Limited Government (ALG) President Bill Wilson in response to the Bureau of Economic Analysis’ downward revision of economic growth in the third quarter.
“First at 2.5 percent, then 2 percent, and now revised downward to an anemic 1.8 percent, the economy in the third quarter has once again fallen way short of the government’s rosy projections,” Wilson said.
That means the Bureau had “initially exaggerated the actual growth number by 38 percent,” which Wilson warned would have serious ramifications on the government’s projected revenues over the next decade.
The White House Office of Management and Budget (OMB) has said that revenues will more than double the next decade, from their current level of $2.1 trillion to more than $4.8 trillion by 2021.
Much of that hinges on the robust growth that is projected. In 2011, OMB had said growth would top 3.1 percent. In 2012, it claims it will rise as high as 4 percent.
It will be very telling how OMB takes current economic data into account when it publishes its next budget in February. If it does, then it will likely show revenues growing by a much slower rate, and, particularly, that the debt growing much faster.
But, it being an election year in 2012, and in essence being a White House operation, in reality one should expect next year’s numbers to be as exaggerated as this year’s numbers.
Which tells the American people everything they need to know about what government statistics have become — they are nothing more than a propaganda tool to prop up elected administrations.
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