Balancing budget now won't solve U.S. debt woes

April 30, 2007
Balancing budget now won't solve U.S. debt woes

Let's assume that all of Bush's projections were to come true and a surplus was realized in 2012. According to his playbook, the story either ends there or reverts to the old ploy of more tax cuts. But the story neglects one detail: The national debt. During the Bush years, the debt grew from $5.7 trillion to $8.8 trillion, a 54 percent increase. By the time Bush leaves office, it'll have grown past $10 trillion. In other words, Bush will have saddled the country with almost more debt than all previous presidents combined, including Ronald Reagan, the last champion of Republican fiscal discipline.

Bush built his economic promises on two lies: That tax cuts would "generate strong revenues to the Treasury" -- demonstrably false, considering the near doubling of the national debt. And that balancing the budget was the end game. Why, then, did his administration report last week once again that Medicare and Social Security are heading for bankruptcy by 2019 and 2041 respectively, even as the administration keeps badgering Congress to make permanent the tax cuts that amplified bankruptcy? Because the true end game is to use bankruptcy as a means of ending government programs socially beneficial to tens of millions while rigging the tax code to benefit the nation's wealth and dividend class -- its richest 1 percent and overwhelming profiteers of the Bush years.