CSPAN Washington This Week November 18, 2012
Be in deficit 5. 5 . The only way you keep the private sector in the red, above zero, is if the government deficit is big enough to more than offset the trade deficit. If the u. S. Is running trade deficits on the order of 4. 5 of gdp, the government deficit has to be at least 4. 5 of gdp, or the private sector will fall below zero. Every single time. Here is the cbo forecast. This is what is projected to happen to the government deficit if we hit the cliff. This is the alternative scenario. If we hit the cliff, the projection is that the government deficit will shrink to around 2 of gdp. Defi...