FISCAL 2003 IS NEARLY OVER AND THE COUNTRY IS FACING WHAT ECONOMISTS ARE CALLING A RECORD DEFICIT.
FROM THE HALLS OF CONGRESS TO THE CAMPAIGN TRAIL, POLITICIANS ARE ARGUING OVER WHO’S RESPONSIBLE FOR ALL THE RED INK.
NEW HAMPSHIRE PUBLIC RADIO CORRESPONDENT SHANNON MULLEN CAUGHT UP WITH THE GRANITE STATE’S DELEGATION FOR THEIR TAKE ON THE NUMBERS.
SHE FILED THIS REPORT.
WHEN THE CONGRESSIONAL BUDGET OFFICE COMES OUT WITH AN ECONOMIC FORECAST, MEMBERS OF CONGRESS LISTEN.
AND WHAT THEY’VE BEEN HEARING IS THAT THE NATIONAL DEBT FOR 2003 WILL BE IN THE HUNDREDS OF BILLIONS.
400 AND ONE BILLION TO BE EXACT.
ECONOMISTS ARE SAYING IT’S A RECORD.
POLITICIANS ARE TRYING TO PUT IT IN CONTEXT.
(GREGG 2:10)
#1 WE’RE COMING OUT OF A RECESSION, #2 WE’RE AT WAR, THE DEFICITS ARE LARGE, THEY ARE NOT RECORD DEFICITS ACTUALLY.
NH SENATOR JUDD GREGG SITS ON THE SENATE APPROPRIATIONS COMMITTEE, WHICH APPROVES SENATE SPENDING BILLS.
(GREGG 4:20ISH)
…THE PRACTICAL EFFECT OF BOTH DOING A TAX CUT AND RUNNING A DEFICIT IS TO CREATE SIGNIFICANT ECONOMIC STIMULUS, WHICH WILL CONVERT TO ECONOMIC ACTIVITY, WHICH WILL IN THE END CONVERT TO MORE REVENUES.
AND GREGG SAYS THAT STRATEGY IS WORKING.
THE PRESIDENT’S PLAN TO CUT TAXES WAS BORN IN A TIME OF SURPLUS.
AND THEN THE WORLD CHANGED.
FRESHMAN SENATOR JOHN SUNUNU.
(SUNUNU 1:31) THE PRESIDENT, AT THE BEGINNING OF HIS TERM, DIDN’T KNOW THAT THE WORLD TRADE CENTERS WOULD BE ATTACKED ON 9/11, DIDN’T KNOW THAT WE’D HAVE A NATIONAL SECURITY MISSION TO DEAL WITH WITH THE TALIBAN AND OSSAMA BIN LADEN IN AFGHANISTAN, WITH SADDAM HUSSEIN IN IRAQ, AND THE PRESIDENT CERTAINLY DIDN’T KNOW THAT AS HE WAS TAKING THE OATH OF OFFICE, THE COUNTRY WAS IN A RECESSION.
BUT THE PRESIDENT MADE HIS BIGGEST TAX CUTS AFTER THE TERRORIST ATTACKS.
TAX CUT CRITICS BLAME THE PRESIDENT.
REPUBLICANS SAY THE RECESSION WAS A HAND-ME-DOWN FROM THE CLINTON ADMINISTRATION.
AND SENATOR SUNUNU SAYS THE DEMOCRATS ARE STILL ADDING TO THE PROBLEM.
(SUNUNU 1:06)
THE DEMOCRATS HAVE OFFERED NOT JUST TENS, BUT HUNDREDS OF BILLIONS OF DOLLARS IN AMENDMENTS FOR NEW SPENDING, THAT WOULD MAKE THE DEFICIT EVEN LARGER THAN IT OTHERWISE WOULD BE.
EACH PARTY BLAMES THE OTHER.
BUT REPUBLICANS HAVE HAD CONTROL OF CONGRESS AND THE WHITE HOUSE FROM A TIME OF RECORD SURPLUS TO THESE DAYS OF DEFICIT.
HERE, THE GOP ARGUES SEMANTICS.
THEY ARGUE THIS DEFICIT IS NOT RECORD BREAKING
IT SHOULD BE GUAGED RELATIVE TO THE SIZE OF THE ECONOMY – OR – THE GROSS DOMESTIC PRODUCT.
IF THIS YEAR’S CBO FORECAST IS ACCURATE, THE DEFICIT WILL BE 3.7 PERCENT OF THE 2003 GDP.
20 YEARS AGO, THE REAGAN ADMINISTRATION RACKED UP A DEBT THAT WAS 6 PERCENT OF THE GDP.
TODAY’S ECONOMY IS MUCH BIGGER, SO REPUBLICANS INSIST, THE TWO FIGURES CAN’T BE COMPARED.
POLITICIANS IN BOTH PARTIES AGREE CONGRESS NEEDS TO BETTER CONTROL SPENDING.
BUT SENATOR SUNUNU SAYS HIS PARTY IS LEADING THE EFFORT TO PASS LEGISLATION TO FUEL ECONOMIC GROWTH.
3:58 IF YOU WANT TO GET BACK TO A BALANCED BUDGET, YOU NEED A STRONG ECONOMY, YOU NEED STRONG REVENUE COLLECTIONS, AND THE LEGISLATION WE PASSED IS ONE OF THE KEYS TO GETTING THAT DONE.
BUT CONGRESS HAS YET TO PASS TWO OF THE LARGEST SPENDING BILLS ON THE TABLE.
THE PRESIDENT HAS PROPOSED AN 87 BILLION DOLLARS SUPPLEMENTAL TO REBUILD IRAQ.
AND THEN THERE’S THE MEDICARE PRESCRIPTION DRUG BILL.
THE CBO’S DEFICIT PROJECTIONS LEFT OUT BOTH MEASURES.
SO IF CONGRESS PASSES THEM, ESTIMATES PUT THE DEFICIT AT WELL OVER 500 BILLION DOLLARS.
(BASS 0:37)
I’M ALARMED AT THE SIZE OF THE DEFICIT.
THAT’S 2ND DISTRICT CONGRESSMAN CHARLIE BASS.
(BASS 1:24)
NOW THE DEFICIT IS BIG, MAYBE REACH RECORD LEVELS, AND IT’S GOING TO HAVE TO BE MONETIZED, WHICH MEANS GOVERNMENT’S GOING TO HAVE TO BORROW MONEY TO MEET THE CASH OBLIGATIONS THAT IT ENCOUNTERS.
AND WHEN THE FEDERAL GOVERNMENT HAS TO BORROW MONEY, IT RISKS DRIVING UP INTEREST RATES FOR EVERYONE ELSE.
BASS SAYS THE COUNTRY FACES A DILEMMA.
(BASS 1:50)
SO I AM CONCERNED ABOUT THE DEFICIT, AS CONCERNED AS ANYBODY ELSE IN THIS COUNTRY, BUT I’M ALSO CONCERNED ABOUT NATIONAL SECURITY, ABOUT SAFETY OF AMERICAN CITIZENS.
1ST DISTRICT CONGRESSMAN JEB BRADLEY AGREES.
(BRADLEY 2:54)
WE CLEARLY NEED TO PROTECT OUR NATIONAL SECURITY. THAT HAS TO BE ONE OF OUR TOP PRIORITIES. AND WINNING THE WAR ON TERRORISM IS CRITICAL TO HOW WE ARE AS A NATION, HOW WE’RE GOING TO GUARANTEE OUR SECURITY. AND WE HAVE TO MAKE SURE OUR DOLLARS ARE SPENT EFFICIENTLY, AND AT THE SAME TIME, WE CANNOT SHIRK FROM WINNING THE WAR ON TERRORISM.
THAT’S ONE POINT WHERE ALL FOUR MEMBERS OF NEW HAMPSHIRE’S DELEGATION AGREE.
SPENDING IS NECESSARY – EVEN THOUGH THEY MAY BE PASSING THE BILL TO THEIR CHILDREN.
THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT EVERY 1 DOLLAR OF TAX CUTS WILL COST TAXPAYERS $3.60 TO FINANCE THE CUTS, THE WAR AND DAY-TO-DAY GOVERNMENT OPERATIONS.
UNLESS THE ECONOMY MAKES GREAT STRIDES, AMERICANS COULD FACE HIGHER FUTURE TAXES.
OR FACE CUTTING GOVERNMENT SERVICES.
FOR NHPR NEWS, I’M SM IN WASHINGTON.
