GOP Slams Obama's 'Rosy' Economic Numbers as 'Tinkerbell Economics'

Congressional Republicans are countering President Obama's economic cheerleading with a claim that his team is engaged in "Tinkerbell economics." A GOP congressional analysis of the economy, posted below, suggests that the Obama plan is not realistic and is based on faulty data. "Rosy Scenario Has Been Replaced By Tinkerbell Economics" is the title of the seven-page briefing document circulated among GOP senators. The document takes on several issues but comes down to this: The administration's numbers are better than the Blue Chip forecast. For example, addressing the 2009 forecast, it reads: "While the administration forecasts a GDP growth rate of -1.2% this year, Blue Chip now foresees a rate of -2.6%." And: "Of the 51 economists who contributed to the Blue Chip consensus forecast not one was as optimistic as the administration and only three forecast a GDP growth rate of better than -2% for calendar year 2009." The document also says that the administration's 2010 forecast is "excessively optimistic" with a GDP growth of 3.2 percent and that the Blue Chip consensus foresees a 1.9 percent increase. It also charges that the administration low-balls unemployment. "President Obama's budget rests upon rosy economic assumptions. Using the latest Blue Chip assumptions for real GDP growth, inflation, and interest rates in place of the administration's assumptions results in: Larger budget deficits, $52.7 billion larger in fiscal year 2010 and growing to more than $330 billion larger by fiscal year 2019; $2.2 trillion in additional federal debt through 2019."

• View the full analysis here.