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Newspaper
Baytown Sun
Location
Baytown, Texas, United States of America
Date
Sep 10, 2003
Page
3
Economists warn the 87 billion request for Iraq and Afghanistan could push the 2004 deficit above 525 to 535 billion and raise questions about long term growth. They note higher deficits may lift interest rates and inflation even as short term recovery continues. The Bush team argues deficits will shrink, but analysts see a troubling debt path ahead.
Analysts debate the 87 billion request to fund the occupation of Iraq and combat terrorism. Some say tax cuts and defense spending boost growth by over a point this year and next, while others warn deficits could raise borrowing costs, inflation, and crowd out private investment.
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