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Democratic lawmakers charged that the tax cuts would increase the federal budget deficit, despite claims by Republicans that the tax cuts would pay for themselves by generating new jobs. "In five short years, the Republican Party failed economic policies have instigated $1.57 trillion in budget deficits and added $3 trillion to the national debt, " said House Minority Whip Steny Hoyer ( Md.).
Thinkpad (AXcess News) Washington - During Fed Chairman Alan Greenspan's
speech to the Federal Reserve Bank of Philadelphia Policy Forum it
was not out of charactor for the out-going central bank head to
preach about the U.S. budget deficit, especially considering that
the bankers were there to discuss policy issues.But Greenspan
alarmed bankers when he told them that "our budget position will
substantially worsen in the coming years unless major
deficit-reducing actions are taken."
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Microsoft Meanwhile, President Bush delivered a picture of optimism Friday
while speaking from the White House Rose Garden saying that the
economy was improving and that spending was be restrained.
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Laptop Computers "We have every reason to be optimistic about our economic
future," said President Bush. "I mean, when you think about the
news that's come in, the jobs report, the recent report on strong
economic growth, low inflation, strong productivity, lower gasoline
prices, a strong housing market, increases in consumer confidence
and business investment, our economic horizon is as bright as it's
been in a long time."
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Laptop Computer Greenspan promoted the reinstatement of the Budget Enforcement
Act of 1990, saying that over the last ten years "many of the rules
that helped constrain budgetary decisionmaking earlier in the
1990s--in particular, the limits on discretionary spending and the
PAYGO requirements--were being violated with increasing frequency;
finally, in 2002, they were allowed to expire."
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Desktop Computer "Reinstating a structure like the one formerly provided by the
Budget Enforcement Act of 1990 would signal a renewed commitment to
fiscal restraint and help restore discipline to the annual
budgeting process," said Greenspan.
Notebooks The Fed Chairman also said the the Social Security benefit
program, as its presently administered, will not be able to make
the payouts to the"baby boomers"sooner than had originally been
expected unless the program is drastically overhauled.
Lenovo "Currently, 3-1/4 workers contribute to the Social Security
system for each beneficiary. Under the intermediate assumptions of
the program's trustees, the number of beneficiaries will have
roughly doubled by 2030, and the ratio of covered workers to
beneficiaries will be down to about 2," said Greenspan.
Hard Drive Medicare was another hot button for Greenspan, citing the fact
that the aging baby boomers would become an economic burden to the
U.S. economy unless significant progess could be made in
productivity to offset those costs, and even then Greenspan
believes, it will not be enough to weigh lightly on the U.S. budget
deficit.
Travelstar "So long as health-care costs continue to grow faster than the
economy as a whole, they will exert budget pressures that seem
increasingly likely to make current fiscal policy unsustainable,"
said Greenspan.
Gateway Greenspan concluded by warning once again about dealing with the
budget deficit, calling on lawmakers to make decsions as quickly as
possible and then carry through on those commitments.
Laptop Parts "Crafting a budget strategy that meets the nation's longer-run
needs will become more difficult the more we delay.
Software "It falls to our elected representatives to determine how best
to address the competing claims on our limited resources. In the
end, the consequences for the U.S. economy of doing nothing could
be severe. But the benefits of taking sound, timely action could
extend many decades into the future," said Greenspan.
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