Up From Debt Reduction

Doug Henwood dhenwood at panix.com
Sun Aug 26 09:32:25 PDT 2001


Michael Pollak wrote:


>Dividing by 10, that means there is a surplus of $148.4bn this year *not
>counting* the funds set aside for debt reduction in the name of social
>security.
>
>But today the FT, warming to its theme, said once again on their front
>page:
>
>> Administration budget figures released this week show that only a $1bn
>> surplus will remain this year unless Congress dips into the $157bn
>> social security surplus
>
>Where did the other $147.4bn go?

According to the adminstration's Mid-Session Review <http://www.whitehouse.gov/omb/budget/fy2002/msr.pdf>, there are only tiny surpluses for the next few years; they rise to $68b in 2005, and to $358b in 2011. The IMF sez Bush & Co. are seriously underestimating the costs of the tax cuts by a lot, and spending by less, so by their lights, there will be no surplus outside SS. But the SS surplus will be more than enough to retire the Treasury's public debt, making the government its only creditor.

Doug



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