Bush's Welcome Gift For Next President: $482 Billion Deficit and Rose-coloured Glasses

The Bush administration released a new estimate projecting that the national deficit will reach $482 billion by the end of the year. And that’s using some preposterously optimistic assumptions about the Great Recovery they see between now and then.

NY Post: The next president will inherit a record budget deficit of $482 billion, according to a new Bush administration estimate released yesterday.

The administration said the deficit was being driven to an all-time high by the sagging economy and the stimulus payments being made to 130 million households in an effort to keep the country from falling into a deep recession. But the numbers could go even higher if the economy performs worse than the White House predicts.

The budget office predicts the economy will grow at a rate of 1.6 per cent this year and will rebound to a 2.2 per cent growth rate next year. That’s a half-percentage point more than predicted by the widely cited “blue chip” consensus of leading economists. The administration also sees inflation averaging 3.8 per cent this year, but easing to 2.3 per cent next year – better than the 3.0 per cent seen by the blue chip panel.

A $482 billion deficit, however, would easily surpass the record deficit of $413 billion set in 2004.

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