The bullish Brian Wesbury and Bob Stein of First Trust find today’s GDP report (2Q was down an unrevised 1.0 percent) to be, well bullish:
Certainly America shouldn’t settle for 2.5 percent real GDP growth over the long term, but the economy would have to do much better than that to fix entitlement programs through growth alone (via the Heritage Foundation). Like, a LOT better:
Change a few assumptions and those government budget forecasts start to look scary. The Concord Coalition makes a few tweaks to the Congressional Budget Office model:
Howard Gleckman over at TaxVox does a great job on the new government budget forecasts. This is my favorite bit (bold is mine):
The dollar drops and stock rise. If the dollar is supposed to be a reflection of economic strength, this should tend not to happen. David Goldman find this weird, too — and then explains it:
My pal and superbrain Jon Henke got all excited for a minute when he thought that U.S. Senate candidate in Connecticut Rob Simmons was in favor of a carbon tax where the revenue would be used to eliminate payroll taxes. But then the Simmons campaign clarified the matter:
The pleas for politicos and pundits to refrain from politicizing the passing of Sen. Edward Kennedy are actually quite charming in their naivete. The so-called Last Lion of the U.S. Senate was not even dead half of a day when the politicking began. Proponents of Democratic efforts to reform overhaul America’s troubled healthcare system quickly began urging passage as a tribute to Kennedy’s lifelong efforts on the issue.
My friend Washington analyst Pete Davis give his always-insightful two cents:
1) Senator Kennedy’s death is quite a blow to hopes for health care reform. No only could Kennedy rally the troops for the tough parliamentary battles ahead, his seat will sit vacant until late January. Under Massachusetts law, a special election must be held within 145 to 160 days to fill the vacancy and there will be no interim appointment in the meantime. That robs Senate Democrats of a vote until then, leaving them one short of the 60 they need to overcome a filibuster.