A Kumbaya Moment

Did anyone notice that the FY08 and 09 deficits will be a little higher than were projected JUST A WEEK AGO because of the fiscal stimulus bill that was finally enacted?

Probably not.  Last week, between the Super Bowl, Super Tuesday, and the Bush administration's very successful attempt to bury the budget as an issue once and for all, the fact that the final bill was $25 billion or so more than the one passed by the House was barely mentioned anywhere.

Economically, this makes no real difference; the additional spending was barely a rounding error in the great scheme of things.  As a percentage of total spending in the budget and of the GDP, it wasn't worth mentioning.

But politically, it shows how much the stimulus has changed this year's budget debate.  It wasn't that long ago (as in weeks) that the White House and congressional Republicans would have been railing against a $175 billion increase in government activity and congressional Democrats would not have been actively supporting it for fear of Republican retribution.  Now, however, it was one of the few kumbaya moments of the last seven-plus years.

Does anyone doubt that, if the economy doesn't improve quickly, another kumbaya moment will be on the way soon?

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