REID: RECORD DEFICITS ARE NOTHING TO CELEBRATE

Washington, DC—With President Bush today celebrating new economic numbers that show his Administration has created a $296 billion deficit, larger than any deficit in American history before the Bush Administration, Senate Democratic Leader Harry Reid issued the following statement. A fact check on today’s economic news is attached below.

“Only Washington Republicans would think a $300 billion deficit is good news. President Bush has turned record surpluses into record deficits largely through handouts to special interests and multi-millionaires. Instead of standing up for all Americans, this Republican Congress is proud to do nothing but rubberstamp President Bush's policies. The American people deserve a new direction from Congress.”

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FACT CHECK:  Economic Good News Is No Accident

Bush Said Today That the U.S. is Cutting the Federal Deficit Faster Than Expected.  “This economy is growing, federal taxes are rising, and we're cutting the federal deficit faster than we expected.”  [7/11/06]

       FACT:  This is Only True because President Bush Has Played the Old “Expectations” Game.  “This will be the third year in a row that the administration put forth relatively gloomy deficit forecasts early on, only to announce months later that things had turned out better than expected. To some skeptics, it's beginning to look like an economic version of the old ‘expectations’ game.  Even economists who hesitate to accuse the White House of playing games say the claims of good news on the budget are unfortunate because they make people unjustifiably sanguine about the government's current fiscal health.”  [L.A. Times, 7/11/06]

Bush is right when he says, “This good news is no accident.”  [7/11/06]