Spend Money to Save Money, and other DC Fantasies

Who do you believe? The non-partisan CBO director, or VP Biden?

Taking a page from the Bush Administration, VP Biden says we gotta spend money to keep from going broke. Kinda' like President Bush destroying capitalism to save it, I guess...

Congressional Budget Office Director Douglas Elmendorf:

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.

Vice President Joe Biden:

“We’re going to go bankrupt as a nation,” Biden said.

“Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, that's what I’m telling you.” (Listen to Audio)

When did Conan O'Brien become the White House script writer?

CBO Director's Blog
CNS News - VP Biden
WaPo -CBO Devastating