Bill Bennett: “First, on the deficit being close to $300 billion in 1992; it is half that now. When I campaigned in 1992 for election…”

“First, on the deficit being close to $300 billion in 1992; it is half that now. When I campaigned in 1992 for election, I said that the deficit will come down regardless of what happens, and every politician in Washington will take credit for it coming down. One of the major reasons it will come down, having nothing whatever to do with any politician in Washington, is that we will finish paying for the savings and loan bailout. That is moving through the system like a pig in a python, and once it finally is digested and taken care of, you will go back down to the same level of deficit you had before we had the bailout of the savings and loan. A lot of us will look at each other and say, ``Aren't we heroes? Look. It has come down.'' When in fact all that really happened is that we are paying off a one-time obligation, and that was completed. The other reason it comes down is because the cold war is over and we have had substantial downsizing in the Defense Department.”