The First Pillar

In his speech in Detroit, President Bush said, “The first pillar of sound economic policy is spending restraint in Washington, D.C.”

FACT: The federal budget deficit will reach a record $448 billion this year, exceeding last year’s record of $412 billion. According to the nonpartisan Congressional Budget Office (CBO), “the long-term outlook for the US budget deficit has deteriorated since the end of last year.”

FACT: Bush has turned a $5.6 trillion surplus into $5.2 trillion deficit: a fiscal decline of $10.8 trillion in just three years. The turnaround represents the worst fiscal deterioration in at least the last half century. The CBO estimates President Bush’s fiscal policies, rather than external factors, “account for much of the reduction.”