Debt
Plunging in the Hole

During the 1970's and 1980's, the federal government constantly spent more money than it collected. This deficit spending forced Washington to borrow billions every month, shoving the national debt into the stratosphere. U.S. borrowing gobbled up much of the nation's investment capital, which otherwise could have created businesses and jobs. During the Reagan-Bush era, federal deficits averaged over $200 billion per year. America became the world's biggest debtor.

But the pattern reversed in the 1990's under President Clinton. Slowly, the budget was balanced, then it moved into the black. Clinton's final budget contained a $179 billion surplus. Much of this revenue stemmed from the stock market boom that generated bigger tax collections. National leaders were overjoyed, because the federal government had regained solvency. Long-range forecasts projected surpluses up to $5.6 trillion over the next decade.

However, under President Bush, America has plunged headlong back into debt. For the current fiscal year ending Sept. 30, the White House expects a deficit of $165 billion - not as severe as the Reagan-era nightmare, but approaching it. Most of the loss stemmed from Bush's giant tax cut for the affluent, plus heightened military spending after the Sept. 11 terrorism tragedy. And the stock market nosedive cut revenue.

The 2001 fiscal year ended with a $127 billion surplus, but 2002 is ending $165 billion in the hole - a drop of nearly $300 billion in a single year. Both Sen. Robert C. Byrd and Sen. Jay Rockefeller have denounced this spectacular loss. Rockefeller said last month that Bush's tax cut "spent every penny of our surplus", and the national debt "has ballooned to $6 trillion".

"I'm afraid we're going to be a nation in debt for some time to come", he said during an earlier Charleston visit. "I don't want to be pessimistic, but it may take us 15 to 20 years to work out of it."

During the 2000 campaign, Bush pledged never to sink into deficit spending. Now that it has happened, he wisecracks in fund-raising speeches that the only possible justification for deficits is war, recession, or national emergency: "Lucky me. I hit the trifecta."

Drowning in red ink, Washington can't afford programs to help average Americans. For example, efforts to provide prescription drugs for retirees under Medicare collapsed in the Senate last week, because the bankrupt federal budget lacks enough money.

Ironically, Republicans are known as the party of fiscal responsibility - yet it's grossly irresponsible to throw away revenue in a giant tax cut, then continue spending money the government doesn't have.