In the short term, the latest spending hike is one factor helping to pull the nation out of recession. But over the long run, some experts say, most of the spending will be a drag on the economy, heighten the risk of sustained budget deficits and limit the maneuvering room of policymakers when, 10 years from now, the government must help fund the baby boomers' health care and retirement needs.
"We should be very concerned," said John Cogan, a budget expert at the Hoover Institution who advised the Bush campaign. "Clearly, the defense and national security increases are warranted. The failure to offset those increases with reductions should be a source of concern. The wrong thing to do is not confront those choices."
President Bush has regularly warned against the perils of federal spending, declaring last year that "excessive federal spending threatens economic vitality." Although administration officials vow to control spending once the current emergency has passed, many experts believe that will be difficult, if not impossible. Last year's tax cut and the recent recession may result in the first back-to-back years of falling revenue since the late 1950s.
iSay - There goes the Boomers Social Security retirement. Hello, AARP?
 10:21:56 AM Google It! comment
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