Thursday, September 08, 2005

Budgetary impact of Katrina

I believe it's been estimated that Katrina will increase the annual federal budget deficit by $100 billion. I'm not sure if this is purely from expected outlays, or if it takes account of macro effects on existing programs (e.g., reduced income and payroll tax revenues from the hit to economic activity, more unemployment insurance payouts, etc.).

This of course is on top of what were already projected to be huge deficits. And it helps to show why budgetary targets and planning ought to take account of the possibility that there will be adverse shocks from time to time.

A further problem is that the Administration had been claiming it would cut the 2004 deficit in half by the end of Bush's second term. Most experts expected this target not to be met, other than through gamesmanship redefining the target so that it could ostensibly be met (a la monthly military recruiting targets). In addition, even if the target was met, the deficit was projected to explode again as soon as Bush was safely out of office.

Katrina not only means that the deficit reduction target can't be met, but also that there is now an excuse for not meeting it. If the Administration's behavior in 2001 is any guide, this suggests that they will regard the deficit reduction pledge as having been completely called off. So perhaps any deficit at all is now politically permissible, since the excuse "We would have done what we promised, except for Katrina" can be used even if Katrina is responsible for only a small percentage of the shortfall.

Since I have to get back to writing my fiscal language book, perhaps this is enough cheerful thoughts for one day.

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www.bargainplace.co.uk really is the place for uk bargain online shopping and your gran can even play bingo online and your dad can chance his look gambling online at one of the many casinos featured on the site which include online poker, roulette wheels, cards, fruit machines/slot machines and lots more!!

What more do you want??? Bookmark www.bargainplace.co.uk now.

PS You can also sign up for a Barclaycard credit card at www.bargainplace.co.uk and even a Premiership football club credit card featuring the likes of Manchester United, Arsenal, Manchester City, Chelsea, Liverpool, Newcastle United, Middlesbrough, Blackburn Rovers, Bolton Wanderers, Wigan Athletic, Tottenham Hotspur, Fulham, Watford, Reading, Rangers, Celtic, Portsmouth, Sheffield United, West Ham and Aston Villa. These are an essential item for all Premiership soccer fans and show your loyalty to your club. These cards are also available at www.coolcreditcards.co.uk

Anonymous said...

WORRY NO MORE ABOUT 2nd grade money math problem BECAUSE LINKREFERRAL IS HERE AND IT IS FREE!! CLEAR YOUR DEBTS AND BUILD UP SAVINGS AND IT DOESN'T COST A BEAN!!

Anonymous said...

Forget uk bargain shopping. If you are looking for the place for bargains then look no further than BARGAINPLACE.CO.UK. They have all the uk's top high street stores including Tesco, Argos, Marks and Spencer, Pixmania, Game, ebay.co.uk, Pricerunner, Barclaycard, Vodafone, Phones4u.co.uk, Phones2u.co.uk, Woolworths, MFI, Littlewoods, e2save.com, Sky Digital, NTL, Talktalk Broadband, Next, Burton and many more.

Your Granny can even play bingo online at WWW.BARGAINPLACE.CO.UK and try your luck at online gambling with roulette wheels, horse racing betting, football bets, cards, fruit machines and lots more. Be sure to bookmark WWW.BARGAINPLACE.CO.UK for future reference and best of luck!! Don't do uk bargain shopping - do WWW.BARGAINPLACE.CO.UK!!

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