As Talking Points Memo points out this morning, President Obama’s proposed budget forecasts an average unemployment rate of 8.9% for the entire year.  It also forecasts a GDP growth of 3% next year, which is a rosy figure considering the fact that Obama’s tax increases will kick in January 2013.

The question, of course, is why Obama would forecast such an extraordinarily high unemployment rate.  There are two answers.  First, it allows him to project similarly extraordinarily high economic growth if his plans are implemented – after all, if you keep the baseline down, that makes [...]

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