Dr. Douglas Elmendorf, director of the Congressional Budget Office (CBO), testified before U.S. Senator Mike Enzi recently and said the economy will grow - but gradually. Elmendorf explains.
Senator Enzi said he believes short-term and immediate difficulties associated with deficit reduction must be endured to avoid devastating consequences he said could come later.
He said major drivers of government spending, entitlement programs like Social Security and Medicare, continue to run deficits - and the CBO concurs. Listen to this exchange between Elmendorf and Enzi on Medicare's health.
Enzi says the CBO’s report makes it clear that while we might see a short-term reduction in deficits, the long-term outlook is far from positive. In order to fix this, he says steps need to be taken to reform entitlement programs and fix what he calls a broken tax code - all to lay down the foundation for long-term prosperity for all Americans.
To view the full report from the Congressional Budget Office, click on the attachment below.