- Jan 20, 2001
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No wonder he got along so well with Kennedy early on
-------------------------------------------------------------------------------------------------------------------------------------------------------Under his administration, the national debt has gone up a stunning 24 percent, to $7 trillion. A chief reason for that increase is that Bush has enthusiastically promoted an explosion in government spending. In 2004, federal government outlays are expected to exceed $2.3 trillion, which is $500 billion more than in 2000. At nearly $500 billion, the budget deficit is close to 4.5 percent of gross domestic product, the sort of ratio usually seen in developing countries that are about to implode. Contrary to the White House?s absurd projections, private economists expect annual deficits of between $400 billion and $600 billion over the next 10 years.
According to recent research, it?s not as if budget questions lack urgency. Medicare and Social Security are under-funded to the tune of $43 trillion. Both programs are in need of immediate reform, as Baby Boomers will soon start hitting retirement age. Yet Bush further bloated the Medicare imbalance in December with a new drug plan costing at least $400 billion over 10 years.
In the very first month of the Bush administration, Donald Rumsfeld sent O?Neill a memo that recommended a giant increase in defense spending to deal with what Rumsfeld saw as new threats to America. The defense secretary also bemoaned the effect of President Clinton?s ?procurement holiday? on transport and weapons systems, according to O?Neill. To address these needs, Rumsfeld requested that spending be increased by between $255 billion and $842 billion over the next five years. To comprehend the audacity of Rumsfeld?s request, recall that defense spending since 2001, after two wars, has increased by around $150 billion.
