Dubya's Fuzzy Economics

What economic planet is Dubya from?

Recently, Dubya blamed the federal government's burgeoning deficit on two causes: a slowdown in the economy (which affects tax receipts) and the ongoing war (which promises only to be more expensive since the President's office has not bothered to place an estimated price tag on any war in Iraq in the proposed budget).

But where are the tax cuts in his explanation?

You can't cut more than $1 trillion in tax revenues (plus whatever future cuts he gets from Congress) and not figure that plays some role in the budget deficit.

I look at the federal budget like my household budget. I get revenue (salaries, etc.), I pay my bills, and I put aside some money (savings, or a surplus in the economic vernacular) for a rainy day. When I get unexpected expenses -- say, the odd war with a neighbor -- I have funds to cover those expenses. I also may spend some of the savings on fun stuff, like a vacation or items for the house. But I do not go around giving most if not all of my savings back to the sources. Never does it cross my mind, "Gee, I got too much money coming in this month, so I'll return it." I know there'll be expenses I don't foresee and I plan to have some resources available to pay them.

Now, there are some, like Dubya, who would argue that tax receipts are not the federal government's money; taxes are the people's money and any surplus should stay in their pockets.

I view the government as a vendor. Just as I get money from clients to provide a service (with any extra going into my savings), the government is there essentially as a vendor -- to provide services that I can't find elsewhere or that other parties can't or won't provide -- national defense, caring for or insuring the less fortunate who slip through other social safety nets, for example. Government is not a private enterprise that should return "profits" as dividends; it's an essential provide of services to everyone.

So, ideally the government should cherish any surplus it receives, stash it away for a rainy day, and have the resources available when the going gets tough.

Dubya would rather return money to the wealthy.

But then, a trust fund president, born into wealth and who benefited financially from daddy's name probably never had to balance the budget for a working class family.

Ah, to be in such touch with the common man.

© Copyright 2003 Keith Jameson. Last update: 2/28/2003; 8:08:59 AM.