The SanityPrompt

This blog represents some small and occasional efforts to add a note of sanity to discussions of politics and policy. This blog best viewed with Internet Explorer @ 1024x768

Wednesday, July 13, 2005

Good News for the White House

You'd have to be pretty mercenary to be disappointed by this news. The two largest threats to American national well being eased back slightly today.

White House Touts Falling Budget Deficit - Yahoo! News:

"WASHINGTON - Surging revenues and a steady economy have led the White House to project that this year's federal budget deficit will drop to $333 billion, nearly $100 billion below earlier estimates. 'We're ahead of projections now,' President Bush said Wednesday. "

U.S. trade gap unexpectedly shrinks 2.7 pct in May

WASHINGTON, July 13 (Reuters) - The U.S. trade deficit narrowed unexpectedly in May to $55.3 billion as exports set another new record and a short-lived drop in oil prices kept imports from reaching a new high, a government report showed on Wednesday. The smaller-than-expected trade gap suggested stronger U.S. economic growth in the second quarter than previously forecast and was likely to keep the Federal Reserve on a path of steadily rising interest rates, analysts said.

The White House is of course touting this as vindication of their economic policies. The point remains however that the deficits created under their watch were not necessary in the first place since he inherited a large surplus and a generational moment where inflows would be larger than outflows as long as taxes and spending stayed near their historic levels.

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