Bush's fiscal policies of bait and switch                                      By Paul Krugman (NYT)                                      Wednesday, November 12, 2003
                                       PRINCETON, New Jersey: Yesterday's absurd conspiracy theory about the                                      Bush administration has a way of turning into today's conventional wisdom.                                      Remember when people were ridiculed for claiming that Vice President Dick                                      Cheney and Deputy Defense Secretary Paul Wolfowitz, eager to fight a war,                                      were hyping the threat from Iraq?
                                       Anyway, many analysts now acknowledge that the administration never had any                                      intention of pursuing a conventionally responsible fiscal policy. Rather, its tax                                      cuts were always intended as a way of implementing the radical strategy known                                      as "starve the beast," which views budget deficits as a good thing, a way to                                      squeeze government spending. Did I mention that the administration is planning                                      another long-run tax cut next year?
                                       Advocates of the starve-the-beast strategy tend to talk abstractly about "big                                      government." But in fact, squeezing government spending almost always means                                      cutting back or eliminating services people actually want (though not                                      necessarily programs worth their cost). And since Tuesday was Veterans Day,                                      let's talk about how the big squeeze on spending may be alienating a surprising                                      group: The nation's soldiers. 
                                       One of President George W. Bush's major campaign themes in 2000 was his                                      promise to improve the lives of America's soldiers - and military votes were                                      crucial to his success. But these days some of the harshest criticisms of the                                      Bush administration come from publications aimed at a military audience.
                                       For example, last week the magazine Army Times ran a story with the headline                                      "An Act of 'Betrayal,'" and the subtitle "In the midst of war, key family benefits                                      face cuts." The article went on to assert that there has been "a string of actions                                      by the Bush administration to cut or hold down growth in pay and benefits,                                      including basic pay, combat pay, health-care benefits and the death gratuity                                      paid to survivors of troops who die on active duty." 
                                       At one level, this pattern of cuts is standard operating procedure. Just about                                      every apparent promise of financial generosity the Bush administration has                                      made (other than those involving tax cuts for top brackets and corporate                                      contracts) has turned out to be nonoperational. No Child Left Behind got left                                      behind - or at least left without funds. AmeriCorps got praised in the State of the                                      Union address, then left high and dry in the budget that followed. New York's                                      firefighters and police officers got a photo-op with the president, but very little                                      money.
                                       For that matter, it's clear that New York will never see the full $20 billion it was                                      promised for rebuilding. Why shouldn't soldiers find themselves subject to the                                      same kind of bait and switch? 
                                       Yet one might have expected the administration to treat the military differently, if                                      only as a matter of sheer political calculation. After all, the military needs some                                      mollifying: The Iraq war has turned increasingly nightmarish, and deference                                      toward the administration is visibly eroding. Even Private Jessica Lynch has, to                                      her credit, balked at playing her scripted role.
                                       So what's going on? One answer is that once you've instilled a Scrooge                                      mentality throughout the government, it's hard to be selective. But I also                                      suspect that a government of, by and for the economic elite is having trouble                                      overcoming its basic lack of empathy with the working-class men and women                                      who make up our armed forces.
                                       Some say that Representative George Nethercutt's remark that progress in Iraq                                      is a more important story than deaths of American soldiers was redeemed by                                      his postscript, "which, heaven forbid, is awful." Your call. But it's hard to deny                                      the stunning insensitivity of Bush's remarks back on July 2: "There are some                                      who feel like that, you know, the conditions are such that they can attack us                                      there. My answer is bring 'em on. We got the force necessary to deal with the                                      security situation." Those are the words of a man who can't imagine himself or                                      anyone close to him actually being in the line of fire.
                                       The question is whether the military will start to feel taken for granted.                                      Publications like Army Times are obviously going off the reservation. Retired                                      military officers, like General Anthony Zinni - formerly Bush's envoy to the                                      Middle East - have started to offer harsh, indeed unprintable, assessments of                                      administration policies. If this disillusionment spreads to the rank and file, the                                      politics of 2004 may be very different from what anyone expects.
                                       E-mail: krugman@nytimes.com 
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