Prometheus 6   

Oh, what to do, what to do…

Dizzying Dive to Red Ink Poses Stark Choices for Washington

By DAVID FIRESTONE

WASHINGTON, Sept. 13 — When President Bush informed the nation last Sunday night that remaining in Iraq next year will cost another $87 billion, many of those who will actually pay that bill were unable to watch. They had already been put to bed by their parents.

Administration officials acknowledged the next day that every dollar of that cost will be borrowed, a loan that economists say will be repaid by the next generation of taxpayers and the generation after that. The $166 billion cost of the work so far in Iraq and Afghanistan, which has stunned many in Washington, will be added to what was already the largest budget deficit the nation has ever known.

With a force that has surprised even critics of the administration, the Iraqi occupation has pushed to the forefront a budget deficit that had previously existed mostly as an abstract red stain on Democratic bar charts. With no extra money available for the foreseeable future, real choices are being illuminated on Capitol Hill — choices between electronic bombs and electrical grids, between low taxes now and lower retirement payments later.

Should Washington reconstruct Iraq's schools and hospitals, lawmakers are asking, or America's? Should it pay for more than 100,000 American troops to stay in Iraq, or for 40 million seniors to be offered prescription drugs through Medicare? And if it tries to do it all, should it keep cutting taxes?

The Bush administration says it can do all of the above, once the tax cuts inaugurate a burst of economic growth. Democrats and virtually every mainstream economist say that something will have to give, very possibly the government's retirement promises to millions of aging baby boomers.[p6: emphasis added]