Thursday, July 16, 2009

CBO Director Speaks Out Again

On his official blog:
Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run. Although great uncertainty surrounds long-term fiscal projections, rising costs for health care and the aging of the population will cause federal spending to increase rapidly under any plausible scenario for current law. Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits. Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy.

I hope this guy doesn't somehow suffer the same fate as the three inspectors general that have been fired in the last 60 days.

Before he came to CBO, Doug Elmendorf was a senior fellow in the Economic Studies program at the Brookings Institution. As the Edward M. Bernstein Scholar, he served as coeditor of the Brookings Papers on Economic Activity and the director of the Hamilton Project, an initiative to promote broadly shared economic growth.

He is appointed by Congressional leaders and has only been in the gig since 12/2008.

From the WaPo:
Though Elmendorf was appointed by Democrats and served for three years in the Clinton administration, admirers in both parties said he, too, is largely untainted by politics. The son of a computer programmer from Poughkeepsie, N.Y., Elmendorf attended Princeton and Harvard, where his dissertation advisers included a Democrat -- Lawrence H. Summers, now Obama's top economic adviser -- and two Republicans: Bush adviser Gregory Mankiw and Reagan adviser Martin Feldstein.

He should now consider himself "tainted" because he just made himself a target of Chicago-style political operatives.

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