Despite, these dismal job predictions, economists predict a 2 percent increase in GDP this year, followed by a 1.1% increase next year. But as we learned in econ, GDP is not a complete indicator of a country's health.
The Bush tax cuts, which are due to expire at the end of this year, would add 5.4 trillion more dollars to the deficit if continued for ten more years. Another topic is Medicare. Paying for Medicare is part of the federal government's mandatory budget, and many from both parties are urging Congress to prevent cuts that would drive up health care prices even further.
Both parties have been spinning this news to their advantages. Republicans use the bleak projections for this year and next year as proof that president Obama's policies have failed. Democrats have been citing these projections to say that increasing revenue, presumably by taxing wealthy Americans, would strengthen the economy, which they believe in the long run is the best way to fix the economy.
So what do you guys think of the news? Is the small decrease in the deficit a cause for at least some celebration, or do all of the other projections make the next few years seem grim? How should and how can Congress try to solve this problem? What effects will this information have on the ongoing 2012 election campaign?
