From CBO today:
Figure 1: Federal budget balance to GDP (blue), Federal budget balance without automatic stabilizers to potential GDP (tan). NBER defined peak-to-trough recession dates shaded gray. Orange shading denotes Trump administration. Source: BEA, CBO (February; June), and author’s calcuations.
On the last complete quarter before Trump’s administration, the cyclically adjusted budget balance to potential GDP under then current law was 2.8% of GDP. In the last quarter before the pandemic (NBER peak 2019Q4), the balance was 4.7%. In the last complete quarter of the Trump administration (2020Q4), the balance was 7.2%. The balance in 2022Q3 was 3.8%.
“On the last complete quarter before Trump’s administration, the cyclically adjusted budget balance to potential GDP under then current law was 2.8% of GDP. In the last quarter before the pandemic (NBER peak 2019Q4), the balance was 4.7%. In the last complete quarter of the Trump administration (2020Q4), the balance was 7.2%. The balance in 2022Q3 was 3.8%.”
Huh 7.2% – 3.8% is only half of that Princeton Steve claim that fiscal restraint = 7% of GDP. Oh wait – you were properly using the cyclically adjusted deficit whereas Stevie was calculating the change in the actual deficit. Now we tried to get little Stevie to read E. Cary Brown AER 1954 but Stevie does not read economics.
I heard Chris kiss up to Trump Christie finally bashing his former hero and one point Krispy Kreme Christie made was that Trump was fiscally irresponsible. Dr. Chinn makes this point just a day later. Please tell me that Dr. Chinn has not decided to be Christie’s economic advisor? Can we all say BridgeGate!
Should we guess that it would be a bridge too far for Dr. Chinn
I love how he said in the Hoover/Frontline interview that he had “taken the punishment” in Bridgegate for what other people had done—when in reality it was the exact reverse. That’s like Nixon saying he “took the fall” for the Watergate “Plumbers”. They lost their jobs and were threatened with prison time for doing what Christie ordered them to do. He is amoral. People were denied ambulance/fire/police service, and DIED because Chris Christie is a petty glutenous farm hog. On top of it he is a disgusting Jabba the Hutt, grimace and look away disgusting deformed pig amoral blob of fat. Christie is worthy of utter disdain. If you’re female and ever have a case of food poisoning, just keep a wallet sized photo of Chris Christie on your person and take it out anytime you need to vomit.