A grim surprise was tucked inside the Congressional Budget Office’s latest budget outlook. Economic growth, it said, will be 2 percent in 2012, falling to 1.1 percent in 2013. That’s horrible.
It’s far beneath the growth rate required for the economy and the job market to recover. But it’s also probably wrong— provided that Congress wants it to be wrong. Because the CBO isn’t saying the economy can’t grow faster than that. It’s saying the economy won’t grow faster unless Congress makes some hard decisions, and soon.
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