every time there is an election in the US there will be a conversation of which of the two parties is more fiscally conservative. each time republicans complain about the democrats’ fiscal irresponsability complaining about the potential for higher taxes and increased government spending. and each time the press and most of all american voters fall for this myth!
and republicans have already started to ensure the public that they are not going to increase taxes and that the democrats will likely do so. today bush proposed his $3.1 trillion budget. here is what business week has to say about the impact of this budget:
Slumping revenues and the cost of an economic rescue package will combine to produce a huge jump in the deficit to $410 billion this year and $407 billion in 2009, the White House says, just shy of the record $413 billion set four years ago.
but this is not all … the next paragraph in this article shows just how fiscally conservative republicans and bush are:
But even those figures are optimistic since they depend on rosy economic forecasts and leave out the full costs of the war in Iraq. The White House predicts the economy will grow at a 2.7 percent clip this year, far higher than congressional and private economists expect, and the administration’s $70 billion figure for military operations in Iraq and Afghanistan is simply a placeholder until the next president takes office.
so hiding one of the biggest cost areas (two major wars) and on top of this calculating with the rosiest of economic growth rates available is called conservative? i just want to remind people her that the previous administration (a democratic one) balanced the budget, something which is actually fiscally conservative, and this one squandered all of this. and here is how these fiscally responsible republicans plan to save a little bit:
Now, he’s [Bush] relying on spending cuts — for everything from transportation to Medicare and Medicaid to nonprofit groups that help the poor — to do the job in order to keep his signature 2001 and 2003 tax cuts intact instead of expiring at the end of 2010. … Bush proposes killing or cutting back sharply 151 programs to save $18 billion next year. Many of those cuts have been proposed and rejected by Congress before, such as moves to eliminate community services grants to nonprofit groups that help the poor, a food program aimed at low-income seniors and grants to help states keep illegal immigrants convicted of felonies in jail. Lawmakers will surely restore proposed cuts to clean water grants, funding for local law enforcement and homeland security grants to states and local governments. … For 2009, that means just a 1 percent boost in a universally supported food program for poor pregnant women and their children, despite rapidly rising food costs. Health research funded by the National Institutes of Health would be frozen, which is likely to mean fewer research grants. … The budget proposes eliminating the $283 million federal program to help people make their homes more energy efficient and would cut energy aid to poor households by $500 million, a 22 percent drop over this year’s spending.
so much for compassionate. as for fiscally conservative … well it is a joke. none of these little programs makes a dent in the budget. if this administration wants to save money then they have to look at the defense spending, that is where the money goes, at the cost of the millions of poor, uninsured americans. to say that a possible tax increase by a democratic administration is big government or tax and spend is just plain stupid. one can ask anyone, but if one is short of money there are two options:
- cut spending
- make more money
there certainly has to be a reduction in spending, but with an economic downturn this can’t be done on the backs of the working poor (because it will only reduce the number of people that can consume), spending cuts have to happen where there is real money and not just pocket change. and if there just is not enough money then those that have a lot have to give a bit more … this is the same logic that bush used when he said there is a budget surplus so the government should give money back to the people.
so when people go to vote for a new president later this year they should ask themselves two questions:
- when was the last time a republican lead government was really fiscally conservative (cut the budget and reduced spending across all of americans not just the working poor)?
- were taxes back in the ’90s really unbearably high?