Trump Budget Uses Optimistic Growth Forecasts

“The Trump administration has drafted preliminary economic growth forecasts in its federal budget planning that rely on assumptions that are far rosier than projections made by independent agencies and most private forecasters,” the Wall Street Journal reports.

Stan Collender: “To say the least, this first set of economic assumptions and the resulting phony deficit will be fake news – lies, in other words – from Trump. Most other credible economists – including from Wall Street, the Congressional Budget Office and the Federal Reserve – either will disagree with Trump outright or, to be diplomatic, will say that what the White House is assuming is in the extreme upper range of what’s acceptable.”

“But let’s be clear: Unless he issues an executive order repealing the laws of economics and budgeting or Congress rejects most of his tax and spending agenda, the federal deficit and debt will both be much higher than Trump will be forecasting.”