Dime's Worth a' Difference: An Update

[sawicky@xxxxxxxxxx (Max Sawicky)]

Next year's surplus is now projected at $258 billion.
Today the Post reports that both Clinton and the
GOP Congress want to reserve 90% of it for debt
repayment.  Of the remaining 10%, Clinton wants
all of it for spending, & the GOP wants half for
spending and half for tax cuts.

Note that from a base of $617b for FY2000, a
percentage point of inflation costs $6 billion
just to keep total discretionary spending
constant.  So of Clinton's implied proposal
of an increase of $26 billion, probably half
is required just to maintain the status quo
(including in the military category). Hence
the proposed increase in total real discretionary
outlays relative to total outlays in this era of
surging GDP is less than one percent.

mbs