January 29, 2008

The supply side fallacy

Once more, the real world results of supply side economics are deficits and economic recession. Period. The Republicans have been talking about the declining deficits. However, they aren't declining anymore. Even before the fiscal 'stimulus' package is added on, the deficit was expected to hit around $250 bn this year.

Even without the stimulus package, the Congressional Budget Office is forecasting the deficit for 2008 will jump to $219 billion, up from last year's $163 billion. And CBO said its new estimate did not include still unapproved outlays for the wars in Iraq and Afghanistan, which will probably push the deficit to around $250 billion.

Which makes Bush's whining about less than 1% of the Federal budget (earmarks) less than genuine given that it's mostly his off the charts military spending that is driving up the federal deficit. Not the projects that Members of Congress put in the federal budget to do something for their districts.

Posted by mcblogger at January 29, 2008 09:22 AM

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