THE GROWTH PRESCRIPTION:

The incredible shrinking deficit (Jack Kemp, July 19, 2004, Townhall)

Liberals are beside themselves. The so-called "structural" deficits that Paul Krugman and other left-wing economists have been fretting about are evaporating before their very eyes as a result of the Bush tax-rate reductions, which have ushered in a robust economic expansion. According to new data, the 2004 deficit will be slightly more than $400 billion this year, nearly $100 billion below estimates from earlier this year. That's what happens when you plug into the supply side of the economy.

Around the world there has been considerable hand-wringing over burgeoning budget deficits, especially during the last few years of slow economic growth. I have always maintained that we can grow our way out of deficits if we simply slow the growth of spending and lower tax rates to get the economy moving again. What is surprising is how quickly we forget the lessons of history, personal experience and common sense.

It's that slowing the growth of spending part that always proves tough.

Posted by Orrin Judd at July 20, 2004 7:00 AM