Sunday :: Aug 1, 2004

More Economic BS from Bushco


by soccerdad

The Center on Budget and Policy Priorities looks at the latest deficit projections. The Administrationís Efforts to Make Harmful Deficits Appear Benign

OMB has projected the deficit to be $445 billion dollars in 2004. This is $70 Billion more than 2003. In his first Budget Bush had forcast a $262 Billion surplus

Of course Bushis spinning this as good news.

1. The Administration has hailed the 2004 projected deficit as evidence that its policies are working. The Administration notes that the $445 billion deficit it now forecasts for 2004 represents a significant improvement compared with the larger, $521 billion deficit it projected last February. As the Center on Budget and Policy Priorities reported at that time, however, the Administrationís February forecast artificially inflated the projected deficit for 2004, apparently so that subsequent downward adjustments in the deficit estimate could be presented as progress rather than as being, in significant part, the substitution of more realistic estimates for overstated ones

2. The Administration also is portraying the drop in the projected 2004 deficit as a sign of stronger-than-expected economic growth
The 3.9% growthis exactly what they had predicted.

3. Cutting the deficit in half by 2009. The Administration is again contending that under its proposed budget policies, the deficit would be cut in half by 2009. But, the Administration uses a further set of unrealistic budget estimates for years after 2004 to make this case; the Administration omits major costs from its projections for those years, such as the costs of continuing relief from the Alternative Minimum Tax, something that the Administration has made clear it favors. Moreover, the Administrationís budget figures are provided for five years rather than ten, leaving out the years from 2010-2014 when the baby-boom generation will begin to retire in large numbers and the deficit is expected to rise

4. Causes of the deficit. On a related front, a number of policymakers and activists with an ideological axe to grind have claimed the recent tax cuts have had little or nothing to do with the deterioration of the budget outlook. The Administrationís own data show, however, that among the deficit-increasing factors over which policymakers have had control, the tax cuts constitute the single largest cause of the shift from surpluses to deficits

Their analysis regarding this last point is substantial and is in their article.

Just another example of Bush spinning and lying.

soccerdad :: 3:59 PM :: Comments (3) :: Digg It!