Knocked sideways by public anger at the government's inept response to Hurricane Katrina, President Bush delivered a televised speech promising the moon to Gulf Coast residents left homeless and jobless by the storm. He added heartening words about the role of racism in the region's enduring poverty.
Backlit by temporary spotlights flown to New Orleans, Bush vowed to spare no expense in what he called 'one of the largest reconstruction efforts the world has ever seen.' He added that 'federal funds will cover the great majority of the costs of repairing public infrastructure in the disaster zone.' Costs are estimated at $200 billion, very roughly what the United States expects to spend in Iraq this year.
And here's the beauty part: In the short run, those billions will come mostly from the governments of China and Saudi Arabia in the form of Treasury Bond purchases. Eventually, of course, the debt must be repaid with interest, but not while Bush is president. Sweet.
Pressed by reporters for a ballpark estimate, the president shrugged. Rebuilding after Katrina, he said, would 'cost whatever it costs.' He vowed not to raise taxes. Unspecified and improbable spending cuts will supposedly make up the difference.
Since Bush took office in 2001, government spending has risen almost by a third, from $1.86 trillion to $2.48 trillion, Newsweek reports. He has never vetoed a spending bill. In recently signing a $286.4 billion, pork-laden transportation bill--$250 million to build a bridge from a town of 8,000 to an island of 50 in a powerful Alaska congressman's district, for example--Bush praised himself for doing it the 'fiscally responsible way.' Instead of raising taxes, he'd borrowed the money.
Bush 'conservatism,' see, is grasshopper conservatism. Party today, let the ants pay the caterer another day. Meanwhile, two little-known millionaire-only tax cuts enacted in 2001 will take effect next year. By removing ceilings on personal exemptions and itemized deductions, the Center on Budget and Policy Priorities calculates they reduce income taxes for the top two-tenths of 1 percent of Americans $20,000 each. The five-year budget cost is $35 billion"