Bankrupting the Country

January 21, 2003

The Bush administration expects that the federal budget will wind up $200-$300 billion in deficit this year and that such deficits will continue "for the foreseeable future." These projections do not include the cost of a war with Iraq which has been estimated at another $200 billion. These deficits will be the largest ever.

Bush has managed to turn the federal budget from surplus to deficit in only 2 years by following 2 very simple rules: 1) provide massive tax cuts for the rich, and 2) give the rich hundreds of billions in government funds through various bailouts and especially through the militarization of the economy.

Of course, at the same time, Bush is using the deficit he has created as an excuse to cut spending on vital social programs such as education, health care, housing assistance, welfare, etc.,

In sum, the current fiscal policy -- cut taxes for the rich, militarize the economy, slash social programs -- is bankrupting the public treasury and putting all the government's resources at the disposal of the big capitalists.