More Bad News for the Obama Economy

Americans’ confidence in the economy is sitting at its lowest point since March 2009, and in every state in the country, a vast majority of Americans see the economy as getting worse. Meanwhile, the number of people claiming new jobless benefits rose again last week. Under those circumstances, it’s no wonder the White House is doing everything it can to make even the most dismal economic news seem like a silver lining on a very dark cloud.

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That shred of news came yesterday in the form of the Congressional Budget Office’s (CBO) mid-year assessment of the budget and economic situation. In the report, the CBO lowered its projected 2011 economic growth rate from 3.1 percent in its January report to only 2.3 percent–well below the growth rate needed to reduce the unemployment rate. The CBO also projects a deficit for 2011 of $1.284 trillion–slightly lower than the January deficit projection of $1.480 trillion. As for unemployment, the CBO didn’t have much good to say. In its estimation, the jobless rate will fall only to 8.9 percent by the end of this year but remain above 8 percent until 2014. Economic growth that’s below what’s needed to reduce unemployment and a deficit still over a trillion dollars? How can that be good news? Well, it is if you set the bar for success low enough. And the White House has done just that. In a press briefing yesterday, White House spokesman Josh Earnest said “the report sort of validates the progress that’s been made” while also crediting President Barack Obama’s policies for pulling America “back from the brink.” More...

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