Privatization Pep Rally

Max Sawicky sawicky at epinet.org
Wed Jul 29 14:18:10 PDT 1998



>I have to agree with Doug here, although I am curious about one thing. Has
>there been a history of pessimistic growth rate predictions by the gov't,
>or is this something new?
>
>Brett

There's no single "govt" prediction.

In the early 1980's, Reagan Administration predictions were optimistic. This facilitated the implementation of tax cuts. CBO tended to be pessimistic, as did one of Reagan's advisors, Martin Feldstein. Optimism proved the rule over the 1980's, as a sequence of 'balanced budget' plans were rolled out and collapsed. In the 1990's, predictions began to prove pessimistic.
>From 1990 to 1994, CBO tended to be more
pessimistic than the White House (either one). Since 1994, CBO's optimism has rebounded, which by sheer coincidence facilitates tax cuts by the Republican majority.

Optimism is now at an all-time high, which happens to give Congress 1.5 trillion of budget surplus to play with over the next ten years.

MBS



More information about the lbo-talk mailing list