President Obama’s new budget for fiscal year 2015 is almost entirely free of surprises. The Obama administration supports a number of large tax increases, most but not all of which target high-income households, and so the budget assumes that revenues will grow faster than expenditures over the coming decades and that debt levels will decline. One key reason the White House is able to paint so rosy a picture is that its economic assumptions are different from those of the more buttoned-up Congressional Budget Office. Specifically, the Office of Management and Budget, which is responsible for crafting the president’s budget proposal, maintains that the U.S. economy will be 2 percentage points bigger in 2024 than it will be in the CBO’s projection.
It is often said that America is “a nation of immigrants.” But that’s not true in the strictest sense. As of the 2010 Census, the foreign-born share of the U.S. population was 12.9 percent, and so 87.1 percent of Americans that year were native-born non-immigrants. Granted, the nation of immigrants line tends to be used figuratively, to indicate that virtually all Americans come from somewhere else if you go back far enough. That includes the members of the indigenous communities that had settled in what is now the United States many centuries ago, and the descendants of the enslaved Africans who were brought to the Americas against their will. Yet when we use nation of immigrants so loosely, it loses all meaning.