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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: epicure who wrote (39707)	7/17/2007 2:14:37 PM
From: Dale Baker	Read Replies (1) \| Respond to of 541274

doesn't that mean the budget deficit numbers are nothing more than a fairy tale? Yep. Washington mirror tricks, nothing more. What happens when that stops? It's not that much in the overall scheme of things, maybe $100 billion per year or less than 1% of GDP. But it has been enough to goose economic growth a little bit, which is what deficit spending is all about. Only now we call it "tax cuts" as we cut rates and spend more and more and more. Then when the deficit stimulus produces more economic activity they point to marginal rates instead of overall spending and money supply. Another Washington mirror trick.

To: epicure who wrote (39707)	7/17/2007 2:15:49 PM
From: Cogito	Read Replies (1) \| Respond to of 541274

>>If the deficit does not include the money we are actually spending on the war, which I have read it does not, doesn't that mean the budget deficit numbers are nothing more than a fairy tale?<< Iktomi - Since the war spending is done through "supplemental appropriations" and the like, it is indeed off-budget, and doesn't affect the budget deficit. It does, however, add to the National Debt, which continues to rise alarmingly. This site has some interesting information about the real numbers: zfacts.com - Allen