Posted on 12/03/2022 6:50:22 AM PST by george76
In 2022, Americans did not see much, if any, relief from the economic pain inflicted by the Biden administration in 2021. In fact, things got much worse in several areas. Gas prices hit their all-time highs over the summer as Americans struggled to make ends meet while inflation's lasting effects drained savings, drove up debt balances, and workers' real wages remained negative. Biden's chronically underwater approval — and even worse rating on handling the economy — reflects how unhappy Americans are with Biden's tenure in the Oval Office.
For those who may have hoped that things may turn around — a pivot toward the positive that Biden already claims has happened — a new report from the Congressional Budget Office has bad news, especially as Biden has pledged that he's not going to do anything differently despite Republicans narrowly retaking control of the House of Representatives.
The CBO's top line conclusion of the U.S. economy for 2023 and 2024 is...bleak:
[E]conomic growth will probably be slower in 2023 than the agency projected in May 2022, reflecting recent developments (including higher interest rates), and faster in 2024, as the economy recovers. Rates of unemployment, inflation, and interest will probably be higher over the next two years than CBO projected in May 2022. Slower economic growth and higher rates of unemployment, inflation, and interest increase federal deficits and debt.
That is, in terms of good economic news as we look to the new year, there is no good news — at least according to the Congressional Budget Office.
Within the six page forecast for the U.S. economy and its impacts on the federal budget over the next two years are some scary-looking numbers.
Among them, a projection that we could see Real GDP growth sink to -2.0 percent in 2023, which House Budget Committee Republicans noted would be a 200 percent reduction from the CBO's estimate for next year when Biden first took office.
They also noted that the CBO's forecast for inflation could go as high as double what the congressional scorekeeper previously projected — a fearsome reality for Americans that would likely in turn trigger even more aggressive interest rate hikes from the Federal Reserve.
...
On Fed interest rate hikes, the CBO projects a 4.8 average for 2023, a 4,700 percent increase from the February 2021 estimate in the early days of Biden's presidency.
As the economy is expected to struggle under even more inflation, projected interest rate hikes, and negative GDP growth as a result, the CBO's estimates for unemployment in the next two years are more bad news.
At present, according to the November jobs report, unemployment sits at 3.7 percent. But in 2023, CBO projects a 5.1 percent average unemployment rate with a potential high-water rate of 6.4 percent and the low end still 0.1 percent above the current rate. In 2024, CBO forecasts a 4.8 percent average rate. Both averages are between 30 and 38 percent higher than the current unemployment situation.
And when it comes to the Biden economy's effect on the federal budget, CBO expects the federal deficit to continue spiking by hundreds of billions of dollars despite Biden's dubious claims that he's doing more to reduce deficits than anyone in modern political history.
In 2023, the CBO projection is for an increase in deficits between $200 and $300 billion. In 2024, the scorekeeper expects another $210 to $480 billion worth of increases in deficits.
Commenting on the CBO's projections for 2023, House Budget Committee Republican Leader Jason Smith (MO) said "that unless better policies are put in place to strengthen America's economy, grow jobs and wages, and rollback reckless spending, Americans will continue to feel the effects of the Democrats' failed economic policies for years to come."
"The last two years of Democrat one-party rule have been a disaster for working families who are struggling just to put food on the table," Rep. Smith continued. "President Biden and Washington Democrats’ $10 trillion spending spree sparked inflation, forcing the Federal Reserve to raise interest rates to combat the highest spike in prices in 40 years, and have set our economy on a course for more pain to come."
As the GOP prepares to take control of the lower chamber, Smith reiterated House Republicans' commitment "to use our new majority to stop the bleeding, fight back against wasteful spending, support higher wages, a stronger economy, energy independence, and to stop surrendering American jobs and supply chains to China."
I am to the point where I want it to crash and burn
Well, he does have a brand-spanking new high approval rating.
Things are going GRRRREAT! 🙄
Yup. It’s gonna happen in Minnesota. Democrats run everything now. They have already said they are going all in. They will blow the 10 billion surplus on permanent spending pass a bonding bill and then when the one time 10 billion is gone they will raise taxes.
Things should crash in late 23 to mid 24 here.
On the fed level if Republicans do what they normally do they will trim a bit on the massive spending bills Democrats dream up and call it a win and things should crash by the 2024 election
Oh and when things federally crash in 2024 Democrats will blame republicans and it will stick and Democrats win in 2024.
Can’t say I argue, but that’s because I hope good would come out of it.
My other thought is that they want to crash it because they already have their solution.
A global, centralized digital currency.
That in conjunction with medical control is zugzwang into checkmate.
I don’t know if it’s going to get worse. Inflation is still a problem but is not quite as bad as it was a few months ago. The danger of recession seems to be ebbing. We have some layoffs, primarily in the tech industry, but there are still plenty of jobs to be had.
But if either inflation or recession does become a problem, Biden is going to take a pounding.
I agree. At this point, I think the change we require is so extreme and so radical that we need to abandon any idea of tweaking some sort of legislation. I would like the transition to be peaceful (if possible) but we need a revolution in which all the rules go out the window and we remake our system. If we do not do that ourselves, then the other wide will throw the rules out the window and they will remake our system. They are clearly already doing that. The Constitution is already pretty much dead, and there is no rule of law. The powerful people just do what they want. That’s the problem, but it must also be the solution, if better people get control. I am not optimistic.
in 2024 Democrats will blame republicans and
it will stick and Democrats win in 2024.
*************
Interesting. Dems blame and Pubs don’t refute. Nice formular
for a recession and reset of the economy. Life goes on. jmo
You see the dilemma most all wish to not confront. You cannot make an omelet without breaking an egg.
2023 was just a tune up for 2024 stock up now.
You would think, but if (when?) the economy goes south in 23' or 24', the Democrats will have a ready made boogeyman to blame: the obstructionist Republican controlled House of Representatives.
But if either inflation or recession does become a problem..
Not a brilliant statement. We are here already, unless you believe the propaganda.
Crash and burn would be best. I perceive that it is falling faster than reported.
We finally got the attention of a builder to frame and weather in our last addition to the little farm house we should have just torn down but there it is. The lumber has gone down only slightly in price and the quality is pure crap but it will have to do, we are not getting younger and it will last for the time we have left I believe.
Nonetheless, I am working with the guys on the crew since I drew the plans and there are some adjustments. They are asking if I have any extra work around the farm for them or if I need any help with the trim out and finish work.
Maybe not crash and burn but down is where we are headed in this part of the country from what I can see. Inflation is hurting ability to pay for the working man and it looks to me like the jobs are getting sparse. The lumber yard is still looking for help but it is replacements from what I can see.
People with good skills in solid trades will still be needed and employed with retirements to replacements running at about 5 to 2.
We do not need to re-do our system.
We need to RENEW our system in light of our Constitution.
Exactly, the morons that think inflation just goes away in a year or two are deluded. I remember the 70’s 80’s, it takes years to eradicate inflation and only if proper actions are taken. If not, ( it will not today, world trade destroyed and supply side issues complicate things) we are headed for countries like Argentina, Brazil, Venezuela, Mexico, etc…all who could not find solutions other than printing more money.
We are here already, unless you believe the propaganda.
I am continually amazed at how the dems change the vocabulary and then repeat repeat repeat until what they want to be reported is accepted by the masses. They didn’t like what constituted a recession so they changed the numbers and with a complaint media have successfully changed what a recession is. We have lost this war. The only thing that can change the direction of this mess will be certain states breaking off and leaving the union and we all go from there.
Agree they keep making the same mistakes and expect a different answer the masters of stupidity.
The CBO needs to be required by law to publicly report within 24 hours when Congress is making a spending bill that might contain spending for things that Congress cannot reasonably justify under any of Congress's constitutional Article I, Section 8-limited powers and other constitutionally enumerated expenses.
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States." —Justice John Marshall, Gibbons v. Ogden, 1824.
After all, it shouldn't take one of misguided (imo) Pelosi's infamous 2600+ page spending bills to run the U.S. Mail Service, one of the very few express powers that the states have actually given the post-17th Amendment ratification feds to dictate peacetime domestic policy, most federal domestic policy based on stolen state powers imo.
"Article I, Section 8, Clause 7: To establish Post Offices and post Roads;"
"10th Amendment: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
"From the accepted doctrine that the United States is a government of delegated powers, it follows that those not expressly granted, or reasonably to be implied from such as are conferred, are reserved to the states, or to the people. To forestall any suggestion to the contrary, the Tenth Amendment was adopted. The same proposition, otherwise stated, is that powers not granted are prohibited [emphasis added]." —United States v. Butler, 1936.
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