ECONOMISTS WARN OF DIRE BUDGET CONSEQUENCES

A group of elite economists met last week to discuss their concern over the sustainability of Federal Budget and the dire effects that it will have on our future. The most interesting comments came from Ed Lazear, former Presidential Advisor, and current Professor of Economics, who said that raising income taxes alone is NOT enough to close the deficit. He stated that Congress needs to drastically cut spending and roll back the spending to GDP ratio to the levels of 2007-2008 and apply restraints on the growth in goverment expenditures to an amount = Inflation Rate - 1% per year.) Based on his proposed budget, President Obama realizes that raising income taxes will not close the budget gap. His plan calls for a 4% deficit when the historical average is 2% gap. (There also where a great many years that actually had a balanced budget in place!!!)