Do you think Biden has caused us to hit rock bottom economically yet? In 2022, we saw gas prices hit an all-time high and we watched the savings of Americans drain away as they tried to make ends meet. Inflation was high and Biden’s approval rating was low.
If you are hoping that things are going to turn around for 2023, here is a report from the Congressional Budget Office that you won’t like.
“Economic growth will probably be slower in 2023 than the agency projected in May 2022, reflecting recent developments (including higher interest rates), and faster in 2024, as the economy recovers. Rates of unemployment, inflation, and interest will probably be higher over the next two years than CBO projected in May 2022. Slower economic growth and higher rates of unemployment, inflation, and interest increase federal deficits and debt.”
The bottom line…there is no economic good news in the forecast. The U.S. economy and its impact on the federal budget still have some storms ahead in the coming year or two.
We are looking at a projection that we could see Real GDP growth sink to -2.0 percent in 2023. According to the House Budget Committee Republicans, that would be a 200 percent reduction from the CBO’s estimate for next year when Biden first took office.
This group also noted that the CBO’s forecast for inflation could go as high as double what the congressional scorekeeper previously projected. This would almost certainly cause more aggressive interest rate increases from the Federal Reserve.
And in 2023, CBO projects a 5.1 percent average unemployment rate with a potential high-water rate of 6.4 percent. Both averages are between 30 and 38 percent higher than the current unemployment situation.
Commenting on the CBO’s projections for 2023, House Budget Committee Republican Leader Jason Smith (MO) said: “that unless better policies are put in place to strengthen America’s economy, grow jobs and wages, and rollback reckless spending, Americans will continue to feel the effects of the Democrats’ failed economic policies for years to come.”