The Limited Effects of Fiscal Stimulus

Writing in the New York Times, Robert Reich explains how a minor and temporary boost to workers' incomes is tempered by the long-term trend in income inequality.

read in full

Mentioning the Unmentionable

Writing in The Wall Street Journal, Jesse Drucker notes($) that the full cost of the recently-passed economic stimulus package is slightly underestimated by the Joint Committee on Taxation's score: A round of business tax cuts in Congress's economic-stimulus package passed Thursday will cost nearly triple the official government estimate, tax experts said.

read in full

Bush Budget Continues to Disappoint

President Bush's FY 2009 budget continues to receive poor reviews into its second week. We reviewed a number of those reactions last week (see our summary posts here and here), and below are some additional disappointed reviews:
  • The Daily Tar Heel: Budget May Cut Student Loans
  • BlackAmericaWeb: Reading Is Fundamental's Program Target of Major Cuts
  • Center for American Progress: Bush's Budget Cuts Aid to Displaced Workers
  • The Buffalo News: Bush Budget Disappoints
  • Washington Post: No Funds in Bush Budget For Troop-Benefits Plan
  • WP's Stephen Barr: Social Security, DHS Say Bush's Budget Falls Short

read in full

House Approves Senate-Revised Stimulus Package, Heads to President's Desk

The House voted (380-34) to approve an economic stimulus package passed by the Senate hours earlier. The measure now awaits the president's signature. Congress has decided that the hungry, the unemployed, and the cold should continue to go without adequate food, adequate income, and adequate heat, because putting money into their hands would do little stimulate the economy as they probably wouldn't spend it.

read in full

More Reactions/Analysis of President's Budget

More reactions and analysis of the president's budget have emerged since our first round-up post on Tuesday:
  • CBPP: President's Budget and Medicare "Trigger"
  • NWLC: Budget Woes: President's FY 2009 Budget
  • Committee for a Responsible Federal Budget: The President's FY 2009 Budget
  • The Workforce Alliance: FY 2009 Federal Funding Analyses
There have also been a number of statements and analyses circulated from Capitol Hill:
  • Senate Budget Committee Dems: Brief Analysis of Bush FY 2009 Budget
  • Sen. Conrad (D-ND): Statement on FY 2009 Budget Release
  • Majority Leader Hoyer (D-MD): Bush's Legacy: Fiscal Meltdown, Weak Economy
  • House Budget Committee: State-by-State Analysis of President's FY 2009 Budget Request
  • Speaker Pelosi (D-CA): Statement on President Bush's FY 2009 Budget
  • Majority Leader Hoyer: Statement on Bush's Release of Another Fiscally Irresponsible Budget
  • Sen. Gregg (R-NH): Statement on FY 2009 Budget Release
  • Senate Budget Committee Repubs: Overview of President's Budget

read in full

Monthly Budget Review: February, 2008

The federal government incurred a deficit of $90 billion in the first four months of fiscal year 2008, CBO estimates, about $48 billion more than the shortfall in the same period last year. Shifts in the timing of certain payments and receipts account for about one-third of that increase in the deficit. ... The federal government recorded a surplus of $15 billion in January, CBO estimates, less than half the surplus recorded in the same month last year.

read in full

Bush Breaks His Record For Tiniest Budget Yet

Since the president's FY 2009 budget request was mostly a rehash of old policies and proposals we've already spent time debunking in previous years, we've been looking for some new angles with which to view the president's budget. As I was sitting at my desk looking at the budget books in my office, the actual length of the main budget volume released this year jumped out at me. Or I should say, it didn't jump out at me. Turns out the main budget book for the FY 2009 budget is the shortest one ever released by the president. At 170 pages, it is more than 45 percent shorter than the average length of the budget book released each year by President Bush (which came in at 311 pages. Not sure what one can make of this change, particularly since the FY 2008 budget is also much shorter than the Bush average. This particular part of the president's budget proposal has evolved during the Bush administration to be a fancy, glossy, picture-filed advertisement for the administration's achievements and priorities, with little hard budgetary information. It is developed, I suppose, to help the administration put the best spin on their budget proposal and successes. I wonder if the Bush administration is tired of actively selling their misguided priorities, particularly in this final year and that is the reason for the shorter volume? Or perhaps they have realized they really don't have many budget achievements that they should be bragging about?

read in full

Bush Weasels Out of Forecasting Another Record Deficit

Had the president used realistic assumptions about economic growth in 2008, yesterday's headlines covering the FY 2009 budget request would have been: "Record Deficit Projected." Instead, the president chose to use a somewhat optimistic GDP growth rate of 2.7 percent, which produces a higher revenue forecast and subsequently lower deficit of $410 billion. If, on the other hand, the president chose to employ the CBO's numbers (GDP growth of 1.7%), the projected deficit for 2008 would have been a jaw-dropping $426.4 billion, significantly surpassing 2004's $413 billion deficit.

read in full

Reactions to Bush's Budget Begin to Appear

The day after President Bush released his $3.1 trillion budget for FY 2009, analysts and advocacy groups have begun to roll out reactions and statements on the proposal. Below are a few out so far: CBPP: Federal Grants to State and Localities Cut Deeply CBPP: The Dubious Priorities of the President's Budget FRAC: Statement on Nutrition Program Changes in Budget NWLC: Bush Budget Locks in Gains for the Rich, Short Changes Women and Families We'll post more statements and analyses as they are released. OMB Watch's overview of the budget will be released this afternoon in the next edition of The Watcher (Sign up here if you don't receive The Watcher).

read in full

The President's FY 2009 Budget Request

The president released his FY 2009 budget this morning. His $3 trillion request is a first, and it comes six years after another historical request - the first $2 trillion request.

Budget of the United States Government: Fiscal Year 2009

read in full

Pages

Subscribe to The Fine Print: blog posts from Center for Effective Government