« Animal Rights Protestors Force Restaurant To Stop Selling... Cat Meat | Main | More Kosola »
June 20, 2006

Deficit Cut In Half: Who's Laughing Now?

Any retractions, corrections, or apologies from the many who scoffed at Bush's plan to cut the deficit?

His "plan" was really just to grow the economy. I would have liked a lot of budget cutting to go with it. Still, it worked. Silence from the media and the Democrats on this, of course.

More than two years ago, when President Bush announced his aim to cut the federal budget deficit in half by 2009, many critics guffawed. They called the goal an impossibility, a naïve and futile effort that would be undermined by the fat-cat Republican tax cuts. A Boston Globe headline declared, “Bush’s plan to halve federal deficit seen as unlikely; Higher spending, lower taxes don’t mix, analysts say.” An Associated Press story went out on the wire with the headline, “Bush goal of halving federal deficits draws skepticism, derision.” In that AP article, Sen. Kent Conrad, the top Democrat on the Senate Budget Committee, was quoted deriding Bush’s plan: “It’s like so much with this administration in respect to fiscal matters, it’s all spin, all the time.” Former Congressional Budget Office director Robert Reischauer called the proposal “fanciful.” To Democrats, the AP reported, Bush’s goal was simply “laughable.”

But the critics are no longer laughing. Driven by a surging national economy, tax revenues are increasing and the deficit is rapidly shrinking. The president’s deficit-reduction plan looks like it will not only succeed, but will do so years ahead of schedule.

The country was facing the largest projected deficit in history when Bush promised to halve it as a percentage of GDP by 2009. Due to high wartime spending and the residual effects of the 2000–01 recession, the White House expected the 2004 deficit to reach $521 billion, or 4.5 percent of GDP. Bush’s goal was to reduce this to 2.25 percent by 2009.

After all the beans were finally counted, the 2004 deficit came in at $413 billion—roughly 3.5 percent of GDP. The economy had begun expanding, partly in response to Bush’s tax cuts, creating jobs and boosting revenue. This trend continued into the next year, pushing the deficit down to $319 billion in 2005.

This year, the projections look even better. Through the first eight months of this budget year, the deficit is $227 billion—16.7 percent lower than this time last year. That’s largely because government revenues in these eight months have reached $1.545 trillion, up 12.9 percent from last year.

...

Despite the strong updraft of federal spending, the deficit is on track in the next few years to continue falling until it approaches 2 percent of GDP. This is below the 2.5 percent that has been the national average since 1970, demonstrating that the president’s critics were simply wrong when they claimed that the Bush tax cuts would lead the country into economic ruin.



NRO's bit on the "S.O.S (Stop Over-Spending) Act" is also worth reading.


digg this
posted by Ace at 12:16 PM

| Access Comments




Recent Comments
JB1000, EAJ: "I am hoping Mr. Kimmel has the 'joy' of being told ..."

Ruthless: "Gawd, I gotta go eat something. You guys are addic ..."

katya the designated driver: "We cut our cable two years ago. Rarely miss it. ..."

Bitter Clinger and All That (Back from the Dead): "One mo' step, i'll juke you. ..."

HILLARY!!!: "Try and take the hot sauce outta my purse!  I ..."

Nevergiveup: "it's not your night. Posted by: Donna&&&&&&V. at ..."

Tami[/i][/b][/s][/u]: "505 Tami- Thank you for the reply. Answered Pos ..."

illiniwek: "wow ... most of the way through the "emotional con ..."

Ladylibertarian: "I first read that as "shaved" and proceeded to dry ..."

sven10077: "439 Posted by: Eromero at October 16, 2017 09:31 P ..."

josephistan: ">> I first read that as "shaved" and proceeded to ..."

chavez the hugo: "502: brilliant. an empty lambeau would be one for ..."

Recent Entries
Search


MuNuvians
Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
News/Chat
Archives
Powered by
Movable Type 2.64