Bigger budget deficits? What are you talking about? You need to check out today's Investors Business Daily.

http://www.investors.com/editorial/issues.asp?v=1/21

Excerpt of the first few paragraphs:

Growth Solution

INVESTOR'S BUSINESS DAILY

Budget: The five major Democratic challengers to President Bush have made a big deal about the U.S. budget deficit. Just in time to watch it shrink.

We know, we know. Predicting what happens with something as unwieldy and volatile as the budget deficit is a loser's game.

But it seems something is happening now with the deficit that's pretty hard for the deficit bears to explain. According to data recently crunched by ISI Group, one of Wall Street's most respected small investment houses, the deficit in the first quarter of fiscal 2004 was running at about a $340 billion annual rate.

For those whose memories need refreshing, that's way below the $500 billion-plus deficit that most prognosticators see — a swing of roughly $160 billion. And the year's not over.

What's at work?

In a word, growth. The economy's sizzling growth pace is starting to refill the government's depleted coffers.

Yes, spending has risen sharply — at least in nominal terms. But has it really soared out of control, as some anti-deficit jeremiads have stated?

Not really. The best way to measure spending, taxes and deficits is against the economy — not against past levels of spending and taxing. Last year, total federal spending hit 19.9% of total GDP. By comparison, federal spending averaged 20.7% of GDP during the 1990s.

(visit the link for complete story and graphs!)

http://www.investors.com/editorial/issues.asp?v=1/21

Posted by muckdog at January 21, 2004 11:50 AM

Well, muckdog, that's still one big ass deficit, if those numbers are true, and if those numbers are maintained.

And I was refering to the States Budget Deficits, anyway. And I know that most states don't really run budget deficits because they have to balance their books, but we all know that's just a paperwork function, hence things like state bonds and such.

Posted by Duckman GR at January 21, 2004 11:58 AM

Just back from Iowa and had this in my e-mail. I think The Left Coaster audience will enjoy. Sorry if you all have already seen this. Don't use Netscape to open the attachment, use Explorer.

Every God fearing American old enough to vote has the right to enjoy a good song and dance.

http://www.bushflash.com/idiot.html

Posted by SF Betty at January 21, 2004 01:00 PM

Well, the Savior of the Free World has spent billions on nation-building. Maybe he thought us folks on the home front deserved some deficit spending too. What's fair is fair after all.

Posted by j Swift at January 21, 2004 05:29 PM