Good news on the economic front

This is good news:

The nation’s budget deficit will drop to $205 billion in the fiscal year that ends in September, less than half of what it was at its peak in 2004, according to new White House estimates.

President Bush planned to discuss the figures in an afternoon appearance.

The new figure is considerably smaller than original estimates. In February, the White House predicted that this year’s deficit would be $244 billion because of stronger-than-expected revenue collections. The deficit hit a peak of $413 billion in 2004 and was $248 billion last year.

Hat tip:  Drudge


3 Responses

  1. If we want it to continue, now is the time to make the tax cuts permanent….

    The quickest way to kill our economy is to raise (or allow to rise) the tax burden on the American people…and yes, that includes the “rich”, as well as the rich.

  2. Alrighty then, let’s do some rithmetic here.
    2004: 413 billion
    2005: 248 billion
    2006: 244 billion

    SUM: 905 billion. In three years, we have increased our total national debt by close to one trillion dollars. This has occurred during one of the longest economic booms in our national history. One might expect, during great economic times, that you would NOT increase your debt by even one penny. What is this going to look like when we hit our next economic downturn?

    Over the last twenty to thirty years, we’ve pulled the Social Security moneypile into our national budget – and spent it. The Social Security moneypile is now a vast mountain of IOUs as that money has disappeared into the maw of the federal spending money machine.

    Over the last twenty to thirty years, baby boomers have amassed a mountain of PERSONAL debt as well, struggling under huge credit card balances and other forms of debt. Far too many of them are completely unprepared for their looming retirement. They’ve trained themselves to keep expecting money for nothing (well, money for more debt). When they face retirement hardship, they’re going to expect us to bail them out with greatly increased taxes; or, what the heck, let’s just increase our national debt by another 400 billion each year, so they can be comfortable. It’s just debt, and it doesn’t matter, right?

    Eventually, this mountain of debt has got to bite us, and bite us hard. I think we’re in for a lot of pain when the bill comes due.

  3. I agree with your last sentence, Mike. But raising taxes isn’t the answer. More responsible spending — both at the government and the personal level — is. As for the Social Security problem, I think we’ve let that fester too long and I don’t so any fix for it at all. (But then again, I am not, and have never pretended to be, a clever economist.)

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