Dog Bites Man Dept.: Fat Cats and War Profiteers to Feast on Bush Budget

Well, here's some really unexpected news: the main beneficiaries of George W. Bush's new budget will be the crony conquistadors pumping blood money from Iraq and the "War on Terror," along with the major investment houses. The losers? Oh, you guessed already: the poor, the old, and the sick.

A nation ruled by vicious cranks, a government placed at the service of the super-rich, an opposition riddled with corruption and cowardice, and endless war stretching in every direction: God almighty, what would have happened if the Bushists had won the 2006 elections? And God have mercy on a country careening like a lunatic into a house on fire.

Except from Bloomberg News:
Defense contractors such as Boeing Co. and companies developing alternative fuels such as VeraSun Energy Corp. stand to gain from President George W. Bush's 2008 budget, while some health-care companies and drugmakers may be pinched by trims in the Medicare and Medicaid programs.

Bush's spending plan of $2.9 trillion, which he sent to Congress this morning, contains money for grants, loans, programs or changes in the law worth tens of billions of dollars to American businesses. The budget will benefit a cross-section of basic U.S. industries, from transportation to defense to airlines, said Michael Darda, chief economist at MKM Partners LP in Greenwich, Connecticut.

"The winners are still going to be the industrials, because of a strong economy, high profits and a war on terror in which there's no end in sight,'' Darda said.

Excerpt from Buzzflash:
George Bush's proposed $2.9 trillion budget follows his pattern of ill-advised economic planning that is bad for the vast majority of Americans. Bush hopes to boost military spending 12% to $481 billion - roughly 20% of the entire budget - and to make permanent his tax cuts for the rich at a cost of $1.6 trillion over the next decade.

At the same time, Bush's plan projects the current $248 billion deficit to slowly decrease into a moderate surplus in 2012. All of the spending on wars and tax cuts means something will have to give, and that something is domestic services. As Reuters reports:

The spending plan would hold growth in domestic discretionary spending to 1 percent. After accounting for inflation of 2.5 percent, that rise would amount to a cut in programs ranging from labor to education and cleaning up the environment.

Slashes in education money include the termination of 43 "low-priority" programs. Bush's plan also calls for a significant reduction from health care funding: $66 billion for Medicare and Medicaid over the next five years. Among his plans for implementation are higher premiums and less money for the Children's Health Insurance Program. Bloomberg.com calls the proposed budget "a menu of politically perilous cuts affecting the poor, the elderly, and the disabled."
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