He said his budget projections are based on economic assumptions that “are perfectly consistent with what Blue Chip forecasters out there are saying.” Not true. The average projection by leading private economists is now for substantially less economic growth than the administration’s forecast assumes.
He said he is reducing “nondefense discretionary spending” to less than it was under the past four presidents. Not true. His own forecast for the final budget of his four-year term puts this figure higher than in many years under Reagan, Clinton or either Bush.
He said he was “angry” about “inexcusable” bonuses paid to AIG executives. But he glossed over the fact that his own aides insisted on watering down a Senate-passed amendment that might have prevented payment of such bonuses.
He repeated that his budget is projected to cut the federal deficit in half by the end of his term. That’s true, but deficits also are projected to shoot up again later unless big policy changes are made.
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