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Part of the success of the 90's budget surpluses were due to budget rules you described, wwcd101 - the Congress was forced to find cuts for every new program it implemented (ie, a zero balance change). Unfortunately this budget rule expired in '01, and with no "divided power" government, there is a no-holds-bar feeding frenzy going on the past 3 years, and no check on the excesses of the Republicans.
Kerry in '04
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"In Iraq, no doubt about it, it's tough. It's hard work. It's incredibly hard. It's - and it's hard work. I understand how hard it is. I get the casualty reports every day. I see on the TV screens how hard it is. But it's necessary work. We're making progress. It is hard work."
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