General Discussion
In reply to the discussion: We need a new Democratic Party [View all]I Cant Dance
(42 posts)in their analysis? I don't believe that they are.
If you scroll down to table Table II.C1. on page 8, you can see that they are using an UE rate between 4.5% - 6.5% for their long run projections. Or better yet, look at Table V.B2 on page 108 for their parameters. They do in fact show that the economy recovers.
As for GDP growth, or the intermediate assumptions, the average annual growth in real GDP is 3.0 percent from 2011 to 2021...
The projected average annual growth in real GDP of 3.0 percent for this period is 0.7 percentage point higher than the underlying sustainable trend rate of 2.3 percent. This 0.7 percentage point above-trend component reflects a relatively rapid increase in employment as the economy recovers and the unemployment rate falls from 9 percent in 2011 to its assumed ultimate level of 5.5 percent in 2019. After 2021, the Trustees do not project any economic cycles. (page 102).
http://www.socialsecurity.gov/OACT/TR/2012/tr2012.pdf