cawacko
Well-known member
http://zfacts.com/p/869.html
Reagan made outrageous claims about what his tax cuts would produce and then made it look like overspending was the dems deal.
To understand how the ruse works, a brief review of the budget process is helpful. A budget passed by Congress is not written in stone; there are actually many flexible items in it. One example is unemployment. The budget says, "Pay each unemployed person XXXX amount in unemployment compensation." If the unemployment rate rises higher next year than anticipated, the budget automatically pays these extra individuals without requiring Congressional action.
Another example of a flexible budget item is interest on the debt. If interest rates soar or receipts drop more than expected, then interests costs are going to be greater. These are paid without Congressional action (unless the debt limit is reached).
In the president's budget proposals, he must estimate next year's unemployment rate, interest rates, and several other economic indicators. We have already seen that in Reagan's first budget, David Stockman came up with a super-optimistic forecast that predicted 5 percent economic growth. (The higher the growth, the less government has to spend on unemployment, welfare, stimulus packages, etc.) Today, Stockman derisively refers to his first budget as the "Rosy Scenario." Although Reagan's remaining budgets were not quite as far-fetched as the Rosy Scenario, they were indeed much too optimistic. In fact, the only reason why spending surpassed the requests in only 7 instead of all 8 years was because one year -- 1984 -- actually saw a phenomenal spike of 6 percent growth.
zfacts.com??? where do you find a partisan hack site like that?