The $3 trillion budget: Is the era of big government still with us?

The Associated Press

A big book, with big numbers

Featured Topic | Posted 41 weeks 5 days ago

The $3 trillion budget: Is the era of big government still with us?

President Bush, who offered up the first $2 trillion federal budget in 2002, today presented the first $3 trillion budget. There's more money for the Defense Department -- although the costs of the wars in Iraq and Afghanistan aren't included -- and a project deficit of $400 billion.

Why is the budget so big? What are Americans getting for their money? And what will the near-record deficit mean for the country's future?

Ben likes: Will budget deficits crowd out tax cuts?

Larry Kudlow/National Review Online

What will McCain and Romney do? They both want to expand the defense budget and the size of the military, as they should, to strengthen our national security in the War on Terror. But this, of course, costs money. Big money. President Reagan argued successfully in the 1980s that low tax rates reignite economic growth — growth that was absolutely essential to generate the resources necessary for a strong national-security posture.

Will McCain and Romney adopt the Reagan approach, or will they see higher tax rates as a tradeoff to a stronger military à la Eisenhower?

Joel likes: Economic disaster looms behind federal spending

Mike Lillis/The Washington Independent

Some of the nation’s top economists warned that America’s long-term spending trends present a far larger financial crisis. Much of the reluctance to act is political, for few lawmakers want to be remembered for raising taxes or cutting benefits for constituents. This is especially true in a contentious election year.

Richard Kogan, a senior fellow at the left-leaning Center on Budget and Policy Priorities, said there would be no sweeping changes to federal spending patterns until the crisis grows more tangible—- and voters are willing to sacrifice in response. "You can’t do the right thing," Kogan said, "until you’ve got candidates who can win by doing the right thing. I think you have to wait for a new electorate."