To complement the abysmal job numbers released this morning, I’d like to point out that the irreplaceable Center on Budget and Policy Priorities had a few interesting observations about the 2004 fiscal year, which just wrapped up with a deficit of $415 billion. A few highlights:
* The 2004 deficit marks the fourth consecutive year of fiscal deterioration, the first time this has happened since the U.S. entered World War II.
* The deficit increased in 2004 even though the recession officially ended in November 2001. This is the first time since before the Depression of the 1930s that the deficit has continued to increase this far into a recovery.
* The 2004 deficit equaled 3.6 percent of GDP, up from the 2003 level of 3.5 percent of GDP and the highest level since 1993.
In 1995, Bush’s Treasury Secretary, John Snow, said, “The budget deficit puts a hole in the pocket of every American, every day of their lives. It threatens the very foundation of our culture and we must seize and act upon this historic opportunity to solve this, the most pressing issue facing the country.” At the time, the deficit was $164 billion and shrinking, and represented just 2.2% of the GDP.
Which reminds me, if you care about fiscal responsibility in government, be sure to check a new report on the issue from the Center for American Progress’ Scott Lilly. He not only chronicles how atrotious the Bush administration’s policies have been; Lilly also notes with some amazement the speed with which Bush has created the deterioration. It’s a sweeping condemnation that’s worth a look.