The future is always “rosy”…

No matter what we do “today”.

At Macroblog David Altig (head of research at the Atlanta Fed) “twitts” the CBO and the BEA:

Key to the CBO’s estimates is a reasonably good outlook for GDP growth after we get past 2012:

“For the 2013–2016 period, CBO projects that real GDP will grow by an average of 3.6 percent a year, considerably faster than potential output. That growth will bring the economy to a high rate of resource use (that is, completely close the gap between the economy’s actual and potential output) by 2017.”

But notes that:

The margin for slippage, though, is not great. Assuming that GDP ends 2011 having grown by about 2.3 percent—as projected by the CBO—here’s a look at gaps between actual and potential GDP for different, seemingly plausible growth rates:

Seems to me that, to the CBO, 2012 is a sort of “Rubicon” that once crossed all the problems will naturally sort themseves out!

Yeah, keep wishing…

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