The crisis that wasn’t

Remeber all those stories about the Bush spending spree and the huge deficit crisis it was creating? Well, that deficit is now shrinking rapidly. And, while you’re not likely to find out about this from the MSM, Lawrence Kudlow has the story in the Washington Times.
Kudlow points out that since the end of last September, tax collections have grown at 10.5 percent, while federal cash outlays have risen only 6.1 percent. At this rate, the 2005 deficit would drop to $355 billion from $413 in 2004. As a fraction of projected gross domestic product the deficit would fall to 2.9 percent from last year’s 3.6 percent.
It appears, then, that the Bush deficits were product of the recession he inhertied and the slowdown caused by 9/11. Similarly, it appears that the Bush tax cuts, by stimulating the economy, has produced an explosion in tax revenues that is causing the deficit to narrow significantly. But, again, don’t expect to hear this from the MSM.
In a sense, it isn’t news that tax cuts have led to growth, which has produced revenue, which has shrunk the deficit. This is how it always seems to work. Still, it would be nice if the MSM briefly acknowledged the recurrence of this phenomenon before turning to the latest “crises” of Bush economics — the trade deficit and the decline of the dollar.