Deficit Not Cyclical says the CBO
According to the Congressional Budget Office:

"In a September 27, 2011 letter, the Honorable Chris Van Hollen requested an estimate of the portion of the federal deficit that is due to the current underutilization of capital and labor resources in the economy. The Congressional Budget Office (CBO) estimates that if those resources were not underutilized—that is, if the economy was operating at its potential level—the projected federal deficit under current law in fiscal year 2012 would be about a third lower, or roughly $630 billion instead of the $973 billion projected in CBO's most recent baseline."

In other words, spending is a huge problem.

Click here to see letter to the Honorable Chris Van Hollen.
Posted on Thursday, January 5, 2012 @ 9:52 AM

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