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I wrote a detailed column about this issue a few months ago, but the press keeps trying to tell the same old lies about the economy. So here I am, again, explaining how the liberal press lies and what the truth really is.

First issue: that this year's deficit is a "record". False! Not in any meaningful sense is the deficit a record. The Federal government ran a deficit of 30% GDP in 1943, and that remains the record deficit. This year's deficit is about 3.5% GDP, so much smaller than the real record that only intentional deception can explain the continue use of the words "record deficit" by the liberal press. In addition, when you compensate for inflation, this year's deficit is about $330 billion (1996 dollars) while the deficit in 1943 was $424 billion in 1996 dollars. Again, only deliberate deception can account for such an error being repeated month after month. (Source: http://www.whitehouse.gov/omb/budget/fy2004/hist.html)

Second issue: Tax cuts "cost" money. Foolishness! Tax cuts mean that you, the taxpayer, have more money, not less! Only a liberal would view the Federal budget from the side of the government, and even then a tax cut would only reduce revenue if the reduced rate brought in less revenue. Apparently some people still haven't learned the lessons of the Laffer Curve and Supply Side economics. The current economic boom is tied to the tax rate reductions, and a growing economy can mean more revenues for the government. Whether the lower rate results in lower revenues remains to be seen. Our past experience with tax rate cuts in the 1980s shows that inflation adjusted Federal revenues increased at a faster rate after the tax cuts. Revenues went from increasing at the rate of $41.6 billion per year (from 1978-81) to increasing at the rate of $52.4 billion per year after the tax cuts (1984-9). (Source: Budget of the United States Government, Fiscal Year 2003, Historical Tables, Table 1.3: Summary of Receipts)

Issue 3: Tax cuts do not increase the rate of growth in the economy. Again, nonsense! Here is the breakdown in growth rates since the Carter years:

Source: Bureau of Economic Analysis

Average Yearly Compound Growth
Carter	2.75%
Reagan	3.5%
Reagan Expansion (83-9)	4.3%
Bush 41	1.75%
Clinton	3.4%
Clinton Expansion (94-2000)	3.8%

Yearly growth rates after the Reagan tax cuts are the highest in recent history, and the growth in recent months after the Bush tax cuts has been the highest since then!

So the next time you see someone in the liberal press lying about the economy, let them know that you know the real facts.

...the press keeps trying to tell the same old lies about the economy.

Not in any meaningful sense is the deficit a record.

Tax cuts mean that you, the taxpayer, have more money, not less!

...let them know that you know the real facts.