Tim Fernholz on the Obama Budget

He writes:>TAPPED Archive | The American Prospect: A new Congressional Budget Office report released today analyzes the president’s budget projections and finds that costs are higher than were initially expected by the administration. Peter Orszag, director of the Office of Management and Budget, just spoke with reporters about the findings. He harped on a simple message: This is normal, it’s part of the budget process, and everything is running smoothly. His explanation for the differences between the projections of his office and the CBO (which he recently led) came in several parts; first, the CBO is working with newer data than the OMB had when it was writing this projection, second, they make different technical assumptions about the impact of a wide range of policies, and third, even small changes in revenue or cost assumptions are magnified in the overall deficit number….>Minor additional thought: The report does basically say that the recession is going to end in the fall of 2009 because of the stimulus and the Fed’s aggressive actions. Wonder if critics will mention that inconvenient fact when they start going after the president’s plan?


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