White House projects record deficit for 2009

[TheHipHopBillGates]

WASHINGTON (CNN) -- President Bush's budget chief blamed the faltering economy and the bipartisan stimulus package for the record $482 billion deficit the White House predicted for the 2009 budget year.

Jim Nussle, the director of the Office of Management and Budget, said the deficit would be about 3.3 percent of the nation's gross domestic product, the measure of the nation's total economy.

The fiscal year begins October 1, 2008.

The federal deficit is the difference between what the government spends and what it takes in from taxes and other revenue sources. The government must borrow money to make up the difference.

While the deficit would be a record in absolute dollar terms, Nussle said it would be below the 2004 deficit, 3.6 percent of GDP, and the record deficit of 1983, 6 percent of GDP, when compared with the size of the overall U.S. economy.

White House spokeswoman Dana Perino said the stimulus package was necessary, even if it increased the deficit.

"We do think the plan was the right one, and it will have an effect," she said. "And the best way to help reduce the deficit is to make sure you are keeping a lock on spending, but also that you can also try to help to build the economy. So we hope this will help us pull out of the economic downturn over the next few months because of the stimulus package.

"I remember that back when we were discussing the stimulus package, both parties recognized that the deficit would increase, and that would be the price that we pay in order to help improve the economy," she said.

Nussle said the $170 billion, bipartisan stimulus, which congressional Democrats and Bush agreed to earlier this year, was a major reason the deficit was expected to reach record levels next year. The deficit projection for 2009 would have been only 2.2 percent of the economy, or $272 billion, if the stimulus package is excluded, Nussle said.

"The determination was made that getting the economy back on track was a higher priority than immediate deficit reduction," Nussle said.

He said the OMB projects that the deficit would fall after the 2009 budget year, and he predicted that the government would have a surplus in budget year 2012, if the president's budget blueprint is followed.

"Near-term deficits are temporary and manageable if -- and only if -- we keep spending in check, the tax burden low and the economy growing," Nussle said, warning that congressional Democrats were planning to add billions of dollars in spending to the federal budget.

President Bush inherited a budget surplus of $128 billion when he took office in 2001 but has since posted a budget deficit every year. View a history of the government deficits and surpluses »

The Bush administration has spent heavily on the wars in Iraq and Afghanistan, and faces a large budget shortfall in tax revenue because of Bush's tax cuts and a souring economy.

A Democratic point man on the budget, Sen. Kent Conrad of North Dakota, blasted the administration for its "reckless fiscal policies," blaming the president's tax cuts for driving the government into deficit and saying Bush "will be remembered as the most fiscally irresponsible president in our nation's history."

Conrad, who chairs the Senate's budget committee, accused the president of "squandering" the surplus he inherited from President Bill Clinton and said the increased debt the government has taken on to cover the deficit has undermined the value of the dollar and hurt the overall economy.

"If they gave out Olympic medals for fiscal irresponsibility, President Bush would take the gold, silver and bronze," Conrad said. "With his eight years in office, he will have had the five highest deficits ever recorded. And the highest of those deficits is now projected to come in 2009, as he leaves office."

But a senior administration official says the budgetary problems stem from what he called inadequate defense, intelligence and homeland security resources that were handed down from Clinton.

The nonpartisan Congressional Budget Office in March projected the deficit for the 2008 fiscal year, which ends September 30, would be $357 billion. It predicted the 2009 deficit to be $342 billion, if the president's proposals were adopted.

Both assumptions, however, were made before the economic stimulus package was passed by Congress and signed by the president this spring. The CBO said it would release revised deficit estimates in September.

The two major presidential candidates -- Democrat Sen. Barack Obama and Republican Sen. John McCain -- used news that the United States' budget deficit will hit a record high as an opportunity to criticize each other's fiscal plans.

http://www.cnn.com/2008/POLITICS/07/...cit/index.html

[Chris]

So much for bush 2004 speech about getting the deficit gone by 2009.. just 1 more thing he putzed up. this guy is better wearing flight jackets and acting like hes in charge, than actually being in charge.

next up....

[jameznyhc]

next up ..lol i have a feeling mccain will be worse.. and obama will be worse than mccain ..not a good time to be republican ill tell ya that

[Chris]

next up ..lol i have a feeling mccain will be worse.. and obama will be worse than mccain ..not a good time to be republican ill tell ya that

not a good time to be anything really.


countrys all messed up.

[metfan85]

we gotta drop labels, democrat republican conservative liberal means nothing nowadays

[CraftyVet16]

we gotta drop labels, democrat republican conservative liberal means nothing nowadays

unfortunatley we have the worst political system in the free world.... people that should be president do not even have a chance... its horrible

[metfan85]

unfortunatley we have the worst political system in the free world.... people that should be president do not even have a chance... its horrible

i dont know if we have the worst.. a lot of these European countries with 12 different parties in parliament are a mess as well.... but I def agree that we've had the shittiest choices as President, anyone with novel ideas on either sides gets shot down by the establishment

[Defekted]

What a joke. Im also down with dropping labels, except for one "worst president evaaaaaaaaaaa"

[TheHipHopBillGates]

this is a Republican controlled Administration right? Where's the traditional fiscal conservatism? Actually where's it been the last 8 years?

[ShaE]

WASHINGTON (CNN) -- President Bush's budget chief blamed the faltering economy and the bipartisan stimulus package for the record $482 billion deficit the White House predicted for the 2009 budget year.

nd Bush's eloquent way of finally acknowledging the economic problem
"Wall Street got drunk"

[ShaE]

we gotta drop labels, democrat republican conservative liberal means nothing nowadays

right. all they do is confine people to certain ideals and positions they may not necessarily have. also, jamez, how are you so sure how much worse mccain or obama would be when we all know WE ALL have been wrong before. rudy much?

[ShaE]

this is a Republican controlled Administration right? Where's the traditional fiscal conservatism? Actually where's it been the last 8 years?

No, they're not republicans, they're opportunists who don't care one bit for genuine republican ideology, only for how they can exploit the label to leverage the power/profit for themselves.

They sold themselves using the republican label, they couldn't be further from it in reality.

[TheHipHopBillGates]

nd Bush's eloquent way of finally acknowledging the economic problem
"Wall Street got drunk"

Well that's an experience he can relate too.

[metfan85]

right. all they do is confine people to certain ideals and positions they may not necessarily have. also, jamez, how are you so sure how much worse mccain or obama would be when we all know WE ALL have been wrong before. rudy much?

yup and whos to say liberals are even liberals and conservatives are conservatives. lately the "left wing" has picked up the old rights cause of non-interventionism meanwhile republican "right wngers" are for intervention everywhere...
just look at how Pat Buchanan had more in common with Hillary Clinton and Obama than John McCain

[metfan85]

No, they're not republicans, they're opportunists who don't care one bit for genuine republican ideology, only for how they can exploit the label to leverage the power/profit for themselves.

They sold themselves using the republican label, they couldn't be further from it in reality.

there needs to be a new fusion party if you ask me

[TheHipHopBillGates]

there needs to be a new fusion party if you ask me

the new fusion party has been at since the Reagan chose a former head of the CIA for a VP and thought that ment he could pick off Latin America leaders & play war games like he was playing Call of Duty on X box, and started de-regulation of industries to find "competitve pricing" for redistribution of wealth. The irony of de-regulation is that it's come full swing and the 2 biggest examples Standard Oil & Ma Bell are almost completely back together.

[jameznyhc]

this is a Republican controlled Administration right? Where's the traditional fiscal conservatism? Actually where's it been the last 8 years?

out the window ..that why we threw them out in 06 lol ..the dems slaughtered us and deserved too.. what have the dems done ?..stop drilling? give bush money for the war? approve the surge? apprpove fisa? ..lol yeah theyre efrfective as well ..

[ShaE]

Well that's an experience he can relate too.

clever, isn't he lol

[ShaE]

yup and whos to say liberals are even liberals and conservatives are conservatives. lately the "left wing" has picked up the old rights cause of non-interventionism meanwhile republican "right wngers" are for intervention everywhere...
just look at how Pat Buchanan had more in common with Hillary Clinton and Obama than John McCain

I think all of this leaning and shuffing, mixing of views, just proves that people do not have rigidly set, uniform ideas about how we should be governed, how we live, laws, etc. You can't fit people neatly into one category or another anymore, almost everyone blurs the line somewhere, so who will cater to them?

we definitely need system reform.

[TheHipHopBillGates]

out the window ..that why we threw them out in 06 lol ..the dems slaughtered us and deserved too.. what have the dems done ?..stop drilling? give bush money for the war? approve the surge? apprpove fisa? ..lol yeah theyre efrfective as well ..

hard to get a lot done when you have a guy who doesn't veto a single fucking thing his first 6 years in office, starts vetoeing everything that comes across his desk. When you have a dem controlled congress & a dem president and their infective, then you can have a free for all, but until then it doesn't really mean much.