Options: Where can the money come from? | ||||
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To the cynic’s dismay, our economy is chugging right along, in a fourth year of expansion, with an unemployment rate of only 5.1 percent. In July, the House Office of Management and Budget projected that the deficit would decline from $412 billion in 2004 to $333 billion in 2005, a sign to some that President Bush’s tax relief plan and pro-growth policies are working. Federal spending is essentially score keeping. The issue is not how we pay for the damages and reconstruction caused by the hurricanes, but the economic ramifications of government spending and tax increases on inflation, output, growth, employment, etc.
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