Editorial: Necessary budget deficit

The federal budget President George W. Bush sent to Congress this Monday would mean a return to large deficits for the next several years. Important parts of the budget include expanding the military, a new social entitlement and tax cuts now and in the future designed to stimulate the economy. But, despite the undesirability of deficits in general, in the current economic and political situation, deficits are both necessary and expected.

Basic economic theory means that in times of economic downturn governments will run deficits. If government fiscal policy remains the same when the economy is weak, tax revenues will be lower and transfer payments to hurting Americans will be higher, overall implying that the government will have less revenue. Therefore, Bush should not be blamed for the deficits, since they are largely a product of a sluggish economy.

Moreover, the United States is at a pivotal moment in its history. In the aftermath of Sept. 11 and with the continuing threat of international terrorism, the federal government has new responsibilities to improve national security. This involves increasing funding for organizations like the FBI and the CIA so that they can better gather and analyze intelligence about security threats. Also, security at borders and airports needs to be improved to better screen for potential threats. All this costs money, which is part of the reason the budget increased.

Tax cuts also figure prominently in Bush's plan and speeding these up to get money to consumers, in order to boost the economy and stock market, is a wise move. This, too, increases deficits in the short run, but the long-term economic growth from tax cuts will outweigh this impact.

Of course, there are probably portions of the budget that can and should be trimmed. For example, spending on projects like missile defense or prescription drug benefits can be delayed until economic times improve. These huge programs are not needed at this time.

In terms of spending for higher education, it is welcome that Bush raised funding for the National Science Foundation, but it is discouraging that he raised funding for the National Institutes of Health by only two percent. Funding research is one of the most important roles of the federal government, especially since this research benefits all Americans, meaning that the government should continue to rapidly increase its spending in these areas.

Overall, although it is unfortunate that deficit spending is necessary, with the economic downturn and international threats, it is. Bush should not be criticized for running a deficit, but Congress should take additional steps to trim spending where possible.