perfidy

It comes to our ears that Bush is moving away from his spendthrift ways and is coming close to a total freeze on discretionary spending in the next budget. Bush will propose an increase of less than 1% for all federal programs save those for homeland security and defense. Fiscal conservatives have been savaging the president for "spending like a drunken sailor" and apparently this move is at least in some part a reaction to that criticism.

But the president will propose increasing governmentwide homeland security funding by 9.7 percent in the fiscal 2005 budget, and the military budget is expected to increase by a small amount.

"This is going to be an austere budget," White House spokesman Trent Duffy said of the budget that Mr. Bush will send to Congress on Feb. 2. The less-than-1 percent growth will be the smallest since Mr. Bush took office in 2001 — and the lowest since his father, President Bush, proposed his fiscal 1993 budget.

Conservatives are happy with the proposal, though some are dubious, myself included. Brian Riedl, a budget analyst at the Heritage Foundation, said the proposal is "definitely a good start."

"The key question is whether the White House will back up this proposal with a veto threat, because last year the president proposed a 4 percent increase and, with the passage of the omnibus spending bill, he's about to sign a 9 percent increase," he said.

If - if - the president actually follows through with this, and puts the arm on congress and even threatens a veto (he has yet to veto a bill) then this will be a very good thing. Deficits, all things being equal, are not a good thing. However, there are reasons to run them, and war and recessions being some of them. So I am not opposed - in principle - to deficits. However, the spending surge under this Republican president has been disturbing to say the least. Most of the spending increases have not been for the military or for homeland security but rather for social and other programs.

These increases, which Bush either proposed himself or did nothing to hinder combined with the recession stricken economy and the tax cuts to bring about our current deficit situation. But the light at the end of the tunnel is that the tax cuts did their work as a stimulus to the economy, which is now looks to be in the early phases of another ten year boom. If the president restrains spending, the increase in revenue through from the growth in the economy should level out the deficits as it did back in the mid nineties. But spending has to be restrained - because its for damn sure that the government can outspend the economy, and will if not watched carefully.

Hat tip to Pejman for the link.