Tuesday, November 23, 2004

More Fuzzy Math

Enron collapsed. It's principals have been convicted. But this administration seems to want to use Enron-style accounting tricks as their model for government budgeting.
"Republican budget writers say they may have found a way to cut the federal deficit even if they borrow hundreds of billions more to overhaul the Social Security system: Don't count all that new borrowing.

As they lay the groundwork for what will probably be a controversial fight over Social Security, Republican lawmakers and the Bush administration are examining a number of accounting strategies that would allow the expensive transition to a partially privatized Social Security system without -- at least on paper -- expanding the country's record annual budget deficits. The strategies include, for example, moving the costs of Social Security reform 'off-budget' so they are not counted against the government's yearly shortfall."

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