This morning, the President’s so-called deficit plan drew some serious criticism from a fellow Democrat and noted expert on deficits and debt. Erskine Bowles, the former Democratic co-chair of the President’s debt commission, faulted President Obama’s plan for failing to “stabilize the debt.” Bowles also noted that the President’s plan falls short of the amount of deficit reduction offered by House Republicans.
Erskine Bowles, The Democratic Co-Chair Of The President’s Debt Commission, Claimed The President’s So-Called Deficit Plan Falls Short Of The Deficit Reduction Amount In The House GOP Plan. BOWLES: “It is $4 trillion, however, over 12 years. It is heavily back end loaded, so when you compare it to the Ryan plan and to the Commission’s plan, which also has $4 trillion in savings, it is probably more like $2.5 trillion.” (Erskine Bowles, Remarks On The Long-Term U.S. Economic Outlook, Washington, D.C., 5/6/11)
- Bowles Claimed The President’s Plan “Doesn’t Stabilize The Debt” And Fails To Ever Reach Primary Balance. BOWLES: “And, in fairness, the way it is setup, according to our analysis, it really doesn’t stabilize the debt. And the debt as a percentage of GDP gets up to around 77%, and it never gets to primary balance, which is about a deficit-to-GDP ratio of around 3%.” (Erskine Bowles, Remarks On The Long-Term U.S. Economic Outlook, Washington, D.C., 5/6/11)