budget deficits

The trillion dollar myth

Stephen Moore, Washington Times

With long-term growth of GDP of 3 percent all the entitlement deficits begin to disappear as well. This is because tax revenues overwhelm spending over time with 3 percent GDP growth. It’s called the power of compound interest. The point here is that CBO’s creaky computer models begin with the firm conviction that Trumponomics won’t work and then surprise, it cranks out a conclusion that Mr. Trump’s policies won’t work. This is what passes for rigorous analysis these days.