Psst, the Deficit’s Shrinking

National Review ^ | 01/13/2005 | Larry Kudlow

[Maigret]

When it comes to Bush MSM's motto is see no good, hear no good, say no good.

[Rodney King]

In the first three months of the fiscal year that began last October, cash outlays by the federal government increased by 6.1 percent

It's the spending that matters most in the long run. Why should spending be up 6.1% with a Republican president and congress? They have totally sold us out on the "less government" concept.

[facedown]

What? The sky's not falling?

[Brilliant]

Should be dropping faster, and it will be. The Administration is aiming for a "no-growth" budget this year. If it passes, we could be looking at a balanced budget before 2008.

[thoughtomator]

Unfortunately, spending from the public trough is self-reinforcing. Doubt you'll find a single Senator who wouldn't oppose wasteful spending - in someone else's district.

[RipSawyer]

"In the first three months of the fiscal year that began last October, cash outlays by the federal government increased by 6.1 percent while tax collections grew by 10.5 percent. When more money comes in than goes out, the deficit shrinks."

What is he talking about? There is not more money coming in than going out, if there were then there would be a surplus, not a shrinking deficit. The mere fact that tax collections are GROWING faster than the outlays are GROWING does not mean more money is coming in than going out. This guy is supposed to be an economist?

[Not A Snowbird]

Why should spending be up 6.1% with a Republican president and congress?

Depends on how it was spent. Did it go to defense, or to continued study of the sex habits of the South American swamp rat?

[Huck]

I don't know how Kudlow can write and wave pom-poms at the same time. Takes talent.

[Rodney King]

Depends on how it was spent. Did it go to defense, or to continued study of the sex habits of the South American swamp rat?

Doesn't matter. Money is fungible. If the increase was in defense then they should have cut from somewhere else.

[massgopguy]

Compare this to the Carter deficit which at $50 Billion was 8.8% of GDP. Now THAT'S an economy killer. Anyone who says this current one is the largest deficit ever is economically illiterate.

[The Teen Conservative]

I bet it may not even be in some newspapers.

[Not A Snowbird]

they should have cut from somewhere else.

Good luck with that! The congress would rather cut their arms off.

[anniegetyourgun]

Which would be in keeping with the ethos of this president...kinda like a Boy Scout (and I believe he was a cub)....leave things in better shape than you found them.

[Pylot]

Isn't that nice??

This year the thieves in DC will only steal about 311 billion from our grandchildren and great grandchildren, many of whom are unborn.

Whats to cheer?

[Edit35]

...in the wake of strong stock market advances over the last two years...(tax) revenues....have jumped by over 14 percent.

I have always maintained that the so-called "Clinton balanced budget" was the result of the booming stock market, which increased capital gains and dividend incomes to such stratospheric levels that the budget was balanced.

When the bubble burst in 2000, six months before Bush was elected, those tax revenues collapsed.

The Democrats as so full of it when they claim that "Clinton balanced the budget" when in fact Clinton did absolutely nothing but sit on his fat butt with Monica as the economy did its bubble thing.

[Mr. K]

Add this story to the other post about a business boom in post-saddam Iraq and W will be looking my-t-fine in 4 years

Especially if we go after Syria and Iran falls on its own

[johniegrad]

I could have sworn Willie posted this article.

[mak5]

There was a billion dollar surplus in December.

[1LongTimeLurker]

If it passes, we could be looking at a balanced budget before 2008.

Uh yeah, as long as the Medicare expansion passed last year is repealed.

[demlosers]

Oh oh, the FR curmudgeons will have less the !itch about.