If you were running the Bush campaign, how would you handle the announcement of another huge Federal budget deficit? You'd probably say something like, "This improved budget outlook is the direct result of the strong economic growth the president's tax relief has fueled," and then hope nobody asks any questions.
That's exactly the announcement the White House made ... on the same day that the Commerce Department said that economic growth continues to slow mostly because consumers don't have much money left to spend after they pay for a tank of gasoline each week.
Here's the Bush logic: You see in February the Administration estimated a $521 billion budget gap, but now they think it will be closer to $331 billion. Presto! An "improved budget outlook" (for which we can thank, of course, the Bush tax cuts). And, as an added free bonus, the new number is less than last year's $375 billion so we don't have to run a campaign in the shadow of a "record deficit."
But wait! It just gets better! What about the long term outlook? A $229 billion deficit by 2009 ... five years from now ... except that the figures after the current year don't include any of the costs of Iraq. How can that be? Simple. The Bush administration hasn't yet asked for any more money for Iraq and doesn't plan to until after the election ... therefore those costs are not included in deficit projections beyond 2004.
Didn't we once have a surplus? You know, the one that President Clinton left to the current resident of the White House?
Star Tribune (MN): White House Projects Highest Deficit Ever
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