In response to:

Barack Obama’s $8 Trillion Output Gap

johnm h Wrote: Apr 21, 2013 8:49 AM
Potential GNP is falling as rapidly as the economy so maybe the gap isn't as large. The more we dumb down the population, get more people onto unemployment insurance and from there to welfare, we reduce potential Moreover, uncertainty and the growing regulatory burden reduces the risk taking among new entrepreneurs who would be the sources of the next boom and expansion. Is it on purpose,? No it's just that this works for a very narrow elite and the leadership of the political class. Leftist rhetoric is just PR and it works for the low information crowd. Those pesky new entrepreneurs are not so easy to control and these types always go after them.

I’m not a very exciting guy. It’s Saturday afternoon and I’m perusing the Budget and Economic Outlook from the Congressional Budget Office.

But sometimes it pays to be a nerd because I just found an interesting tidbit of information. Here’s what CBO says about the anemic economic output we’re experiencing compared to the growth we should be enjoying.

…output is likely to remain below its potential (or maximum sustainable) level until 2017—almost a decade after the recession started in December 2007. CBO estimates that real GDP in the fourth quarter of 2012 was below its potential...