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national debt now approaching $9 trillion« Thread Started on

Daily newsbrief journal for July 2007, also see http://www.usdemocrats.com/brief for a global 100-page perpetual brief and follow twitter @usdemocrats


national debt now approaching $9 trillion« Thread Started on

Postby admin » Sat Jan 28, 2012 1:37 pm

national debt now approaching $9 trillion« Thread Started on Jul 28, 2007, 12:23pm » --------------------------------------------------------------------------------Indicators that matter most being talked about the leastThe federal deficit isn't nearly as good an indicator of economic health as the national debt.read at source> http://www.tennessean.com/apps/pbcs.dll ... 84/1008Our ViewWhen President Bush addresses the Nashville Area Chamber of Commerce today, he is expected to tout the latest projection that the fiscal year will end in September with a federal budget deficit of $205 billion.The White House considers this good news, since the projection in February was for a deficit of $244 billion.Revenue collections 7.5 percent higher than expected are the chief reason for the deficit reduction, economists say. In his speech at Gaylord Opryland, the president is expected to give credit to his policy of tax cuts coupled with spending restraint."The message is unmistakable: America's economy keeps growing, government revenues keep going up, the budget deficit keeps going down," Bush said in a speech recently. "And we've done it all without raising your taxes. When you've got more money in your pockets to save, spend or invest, this causes the economy to grow."Optimistic words, from a president very mindful these days of his legacy. A more realistic picture of the economy was offered Wednesday by Federal Reserve Chairman Ben Bernanke, who told Congress that he expects the U.S. economy to pick up next year after continued stagnation caused by the worst housing recession since 1991. The Fed also lowered its previous projection for economic growth in 2008.So what is the real impact of the deficit? Here are some factors to consider:• It's still $205 billion. That's a lot of money for the government to borrow, especially when the escalating costs of the Iraq war and Medicare prescription drugs threaten higher deficits to come.Many in Washington are concerned, too, because of the administration's track record. Bush inherited a budget surplus when he took office in 2001 and, while it made sense to commit much of that money to anti-terrorism following the Sept. 11 attacks, far more was wasted on the misguided effort in Iraq and other policies, leading to a record-high deficit of $413 billion in 2004.• Tax cuts have been vastly overrated. The president's 2001 and 2003 tax cuts may have briefly stimulated consumer spending, but the wealthiest Americans benefited disproportionately, and at a time when the revenue was needed to offset increase in spending on homeland security and Iraq.• Spending is on the rise. The president says his administration is committed to fiscal restraint, but according to the Treasury Department, the government spent a record $2.066 trillion over the past nine months, an increase of 2.5 percent over the $2.016 trillion spent during the same period in 2006.Meanwhile, the Democrats in charge of Congress want to increase spending on education and health care, while the White House has spending priorities of its own. Unless the two branches learn to negotiate effectively and sacrifice their pet projects, spending is only going to increase.• The federal deficit isn't nearly as good an indicator of economic health as the national debt. If you feel the U.S. is out of the woods because the deficit has fallen more than $200 billion since 2004, consider that the national debt has grown steadily and is now approaching $9 trillion.The debt reflects what America really owes, including the cost of programs such as Social Security and retirement plans for federal employees and military personnel.Mr. President, Americans want and need to get the full picture on our economy — and know that you get it, as well. Working with Congress to eliminate wasteful spending and using more revenue to pay down our debt — those steps will beat a little tax cut, any day.
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