My good friend Veronique de Rugy of the Mercatus Center at George Mason University did a very illuminating interview with Bloomberg about the serial inaccuracy of government fiscal forecasts.
Veronique uses health care as an example, giving particular attention to the Medicare program. One obvious implication is that we should have zero faith in the White House’s estimates for the cost of Obamacare.
Indeed, that was the main point of a video I did, which tore apart the Administration’s absurd claim that a giant new entitlement program would lower costs.
Also keep in mind that the same principles operate on the tax side of the fiscal ledger. This Laffer Curve tutorial has all the details.