Federal Budget Deficit Expected to Reach Over $300 Billion Next Year

["Gary Santos" <evs@xxxxxxxxxxx>]

Federal Budget Deficit Expected to Reach Over $300 Billion Next Year
"The White House said Wednesday that the federal budget deficit will exceed
$200 billion in this fiscal year and probably go over $300 billion next
year, with deficits continuing for the next decade," reports The New York
Times.

"The return to large deficits shows that, once again, Congress cannot
control its spending appetite and that further constraints are needed,"
writes Cato Director of Fiscal Policy Chris Edwards in the Cato Handbook for
Congress.

Edwards continues: "The U.S. Constitution confines federal spending
authority to a few limited areas. Article I, section 8, allows for spending
mainly on basic functions, such as establishing courts, punishing crime, and
maintaining an army and navy. The General Welfare Clause in section 8 is
said to provide a justification for much of today's $2.1 trillion in federal
spending. But much of federal spending is not for 'general welfare' at all.
Rather, it is for the benefit of particular groups and individuals.

"Bold fiscal reforms need to be pursued at both ends of Pennsylvania Avenue.
The administration is under the shortsighted illusion that it can have
bigger government in the selected areas it wants, such as defense,
agriculture, education, and Medicare prescription drugs, but have tight
limits on spending elsewhere. But that strategy leads to larger government
everywhere because Congress is spurred to demand higher spending for all its
favorite programs. Both Congress and the administration must end their
shortsighted jostling for more taxpayer cash. Not only is the government
running huge deficits again, but the looming explosion in entitlement costs
demands that all aspects of the federal spending empire be overhauled."

Wyatt Dubois, editor, wdubois@xxxxxxxx