Wednesday, October 11, 2006

Bush Administration Beats Its Own Economic Goals By Three Years

In 2004, George Bush set a goal to halve the annual budget deficit in five years. He reached that goal here in October of 2006:
WASHINGTON (Reuters) -- The budget deficit narrowed to $248 billion in the fiscal year just ended from $319 billion in 2005 in spite of record spending, as revenues were the highest ever, the Treasury Department said Wednesday.

The 2006 figure compares to an estimate of $250 billion issued by the nonpartisan Congressional Budget Office on Friday. In its last budget forecast in July, the Bush administration had said it expected the 2006 deficit to come in at $296 billion. Revenues were $2.407 trillion, and outlays were $2.654 trillion, the Treasury said. The government's fiscal year ended Sept. 30.

President Bush in February 2004 set a goal of cutting the deficit in half from a projected peak in fiscal 2004 of $521 billion, or 4.5 percent of gross domestic product, although the actual deficit for that year was $412.7 billion, or 3.6 percent of GDP.
In 2000, just a few months before Bush took office, the NASDAQ crashed losing over 2/3 of its value. In 2001, our economy got hit by 9/11. I remember sitting in my office for three months before my industry heated up again. Last year, of course, we got hit with Hurricaine Katrina, the biggest natural disaster in the history of the United States. Congress had to approve a spending package of approximately $125 billion to rebuild New Orleans and the surrounding areas.

Despite all this bad news, the Bush economy continues to go up, up, up. Why? Because tax revenues are up. Why are tax revenues up? Because Bush cut taxes. And, how do tax revenues go up, when we cut taxes? Because when we cut taxes, both consumers and entrepeneurs have more money to put back into the economy, instead of the money languishing in the algae-filled stagnant pools of government programs.

The economy grows when money circulates. When money is spent, revenues go up. When money is not spent, revenues go down. It is that simple. Such simple logic is lost on the oh, so sophisticated Democrats. It takes an idiot, like Chimpy McBushHitler, to understand such simple logic.

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