More news from the land of fiscal responsibility. From the Washington Post:
The federal budget deficit will surge to nearly $490 billion next fiscal year, a record dollar amount, driven by continuing war costs and an economic slowdown that is not likely to turn around fast, according to the Office of Management and Budget. After three successive years of decline, this year’s deficit will jump dramatically as well. That is likely to scramble the plans of the next president, regardless of which candidate prevails. Either Republican John McCain or Democrat Barack Obama will enter the White House in a tide of red ink.
With the Presidential campaign in full swing you might think that deficit reduction would be high on the list of topics, but it really has just been ignored.
Neither McCain nor Obama have been particularly mindful of the budget deficit. McCain has proposed to extend all of Bush’s first-term tax cuts, which expire in 2011, and add hundreds of billions of additional tax cuts, mostly for business. Obama would allow only the tax cuts for most affluent to expire, leaving the lion’s share in place and adding additional tax cuts for the working poor and middle class, plus hundreds of billions in more spending on health care, energy and education.
The Post story had economist Martin Feldstein poo-pooing the deficit numbers.
McCain economic advisers this morning shrugged off the new deficit figures. Harvard University economist Martin Feldstein said the surge of red ink is tied to cyclical developments — the economic stimulus checks and the slowing economy — not permanent changes.
“So I don’t think it has implications going forward,” he said.
Neither campaign seems to want to deal with this issue, or make hard choices on finances. Is it just accepted at this point that Dick Cheney was right when he said “deficits don’t matter”. Republican Senator Tom Coburn, featured in my next post, does not agree.
Bill Manzi.com 
Your Honor,
Both parties have taken to pandering as a means to gain power.
The electorate loves this attention and look forward to receiving unwarranted rewards. Example, Foreclosure bailouts.
Proper financial management requires tough decisions so the country is fiscally healthy.
Those skills do not exist in Washington or Boston. The system is corrupted.
We will pay for this in the future.
Jules
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Your Honor,
Being an important Democrat, do you know what Pelosi and Reid, leaders of the dominant congressional party, have in mind to resolve the falling dollar, and the cost of energy?
Jules
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Jules,
I believe that the falling dollar is the direct result of the Bush-Republican Congress fiscal policies, which in my view are close to insanity. Without going into a whole rant here lets look at the twin problems of trade deficit and fiscal deficit. Not only has President Bush taken a surplus and driven us into monstrous deficits he has done so recklessly. Advocating huge war spending, increased spending on a new drug entitlement, and never vetoing a congressional spending bill for five years has lead us to fiscal meltdown. His total lack of action on energy is an embarassment. And before you tell me that he wants more drilling please understand that regardless of one’s position on bringing additional fossil fuels online that is not an energy policy. Where is the drive to wean us from oil dependency? Where has he even attempted to bridge the gap with Congress on this? Reid and Pelosi are not the President, and legislative bodies are inherently inefficient, regardless of party control. What was Denny Hastert’s recipe for energy? What was Trent Lott’s energy policy. Come on Jules, we elect the President to lead. We now need to elect someone who does not care so much about re-election, because some castor oil for all of us is coming soon.
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Your Honor,
The president has rescinded the drilling restrictions.
What did the Pelosi and Reid do when the evil republicans wanted to have a vote by the congress. They refused to bring it to the floor and adjourned for a 5 week vacation leaving the American people to deal with the uncertain gas and heating oil prices. When questioned why she did not allow a vote, she said, SHE “was saving the planet”.
Bush has called for the vote several times.
How is that for leadership on the part of your Democratic (democratic?) party.
Congress approval 9%
The horrible management of the country is bipartisan. Energy policy has been ignored for many years. No heroes here.
Jules
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They made a mistake in recessing, and should have allowed the amendments on drilling to be considered. To recess without taking action on even one appropriations bill is also bad form. As I mentioned to you in an earlier post legislative bodies just are not efficient and certainly in general lack courage. That is democracy for you.
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