Through The Static

July 29, 2008

US faces record budget deficit

Filed under: Economics,Government — disciplepete @ 12:15 am

Tell ’em, Al:

The US government’s budget deficit is expected to soar to a record $482 billion in the next fiscal year, the White House budget office has said.

The Office of Management and Budget said on Monday it blamed the “recent economic slowdown” for the record figure.

The budget deficit measures the gap between how much the government spends and what it raises through taxes…

…Gerald Friedman, a professor of economics at the University of Massachussetts Amherst told Al Jazeera the government had underestimated the size of the deficit.

“They are not indicating all the costs of the wars in Iraq and Afghanistan despite a mandate from congress to do that. They are only including the first nine months of the fiscal year. 

“They are also projecting that the economy will recover faster than most economists think. We’ll probably be looking at a deficit of around $600 billion by now.

“The problem is that the Bush administration spends money like a drunken sailor rather than investing wisely in schools and infrastructure.”

The budget has been sapped by wars in Iraq and Afghanistan that came as Bush’s tax cuts went into effect.

 

 

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