Bush budget bashes the world, not just US
Published April 26, 2004
The story isn't from some "leftie" tract - it's in the Wall Street Journal:
Two international economic watchdogs warned that President Bush's budget plans will make the U.S. and other countries poorer in the long run.
The International Monetary Fund (IMF) ... estimates that even if the budget deficit is cut in half from $521 billion by 2009, as the Bush Administration projects, U.S. gross domestic product would be 1.4% lower by 2020... For the world, GDP will ultimately be 2.6% lower by 2050.
The IMF warns the outcome could easily be much worse, [and] added that for many poor countries, the effects could be even worse.
Yesterday's report was the latest in a drumbeat of warnings from the IMF in recent years about the deteriorating U.S. budget picture. Like the others, it is likely to fall on deaf ears. [IMF, OECD See Economic Risks In Bush's Budget subscription]
The IMF noted that the outcome could be even worse because of Bush's "optimistic assumptions" such as that there will be no costs for Iraq beyond this year (a likelihood somewhere between zero and minus four), extreme spending restraint (have you seen what your Senators and Representatives are doing?) and others.
Some in Congress are trying to solve the problem, but with limited success (and the majority are just pigs at the trough).
Last month the House adopted a $2.4 trillion dollar budget. It got by only with a narrow 215-212 vote, even though a number of Republicans voted against it. The Senate has taken a small step against the deficit by passing a budget resolution that raises procedural barriers against further tax cuts. The last step may slow things down a bit, but it seems that Congress is determined to consolidate it's reputation as "Spend-and-spend-and-spend" Republicans.
On top of all that, the federal deficit announced a few days ago set a record for the first 6 months of the fiscal year, and is on track to being the largest deficit in the history of the Republic ($299.5 billion for the first half) with further less-than-desirable consequences for the US. [WSJ subscription]
It's not going to get better on its own.
Write your Senators and House Representative and tell them to mind our money.
- Bush budget bashes the world, not just US
- Published: April 26, 2004
- Type:
- Section: Politics
- Writer: Hal Pawluk
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In short, everything is on target from the GOP's perspective; with the deficit as a cover, it can raise consumption and Social Security taxes, privatize Medicare, and also gut education and other social spending.
Since the United States is now the least democratic and middle class society of all the advanced industrial democracies, it's unlikely the GOP can be stopped until it starts cannibalizing itself during Bush's second term.