Peter Orszag, former Director of the Congressional Budget Office is now blaming political polarisation for the current fiscal mess the US government now faces. He cites the inaction of Congress and the lack of dual-party co-operation in solving the nation’s endemic expenditure crisis. Orszag says: “We won’t get to that kind of conceptual agreement until we get some kind of turbulence in the bond market,” referring to the current political shenanigans in Congress. He suggests that action will only be taken if forced by an overwhelming situation like a default on government debt.
Orszag was Director of the Congressional Budget Office from January 2007 to November 2008. He had almost two years to make progress on reducing expenditure and cutting government wastage. Instead he endorsed Obama’s budget proposal and yanked up expenditure even further. Why do we even listen to these people anymore?