Obama Accurately Blamed Deficit Problems On Bush-Era Policies, Conservative Republicans Cry Over Hearing the Truth
Responding to President Obama's budget speech, right-wing media have complained that Obama "blame[d] Bush" for the nation's deficit problems. In fact, Obama is right: Experts agree that President Bush's policies, along with the economic downturn, are largely to blame for the growing deficit.Republicans cannot handle the truth. Their voodoo economics cost the country trillions of dollars in wealth. Obam and the nation not only inherited the debt caused by right-wing conservative economic policy, that debt, even without new spending continues to climb because it is a lot like using a credit card. We have to repay the debt plus the daily interests. Republicans are secretly enjoying this because it gives them a chance to destroy the social safety net insurance programs they hate -like Medicare and Social Security.
Obama: "[B]y The Time I Took Office, We Once Again Found Ourselves Deeply In Debt"
In Budget Speech, Obama Stated: "Democrats And Republicans Committed To Fiscal Discipline During The 1990s, We Lost Our Way In The Decade That Followed." From Obama's April 13 speech on the budget:
To meet this challenge, our leaders came together three times during the 1990s to reduce our nation's deficit -- three times. They forged historic agreements that required tough decisions made by the first President Bush, then made by President Clinton, by Democratic Congresses and by a Republican Congress. All three agreements asked for shared responsibility and shared sacrifice. But they largely protected the middle class; they largely protected our commitment to seniors; they protected our key investments in our future.
As a result of these bipartisan efforts, America's finances were in great shape by the year 2000. We went from deficit to surplus. America was actually on track to becoming completely debt free, and we were prepared for the retirement of the Baby Boomers.
But after Democrats and Republicans committed to fiscal discipline during the 1990s, we lost our way in the decade that followed. We increased spending dramatically for two wars and an expensive prescription drug program -- but we didn't pay for any of this new spending. Instead, we made the problem worse with trillions of dollars in unpaid-for tax cuts -- tax cuts that went to every millionaire and billionaire in the country; tax cuts that will force us to borrow an average of $500 billion every year over the next decade.
To give you an idea of how much damage this caused to our nation's checkbook, consider this: In the last decade, if we had simply found a way to pay for the tax cuts and the prescription drug benefit, our deficit would currently be at low historical levels in the coming years.
But that's not what happened. And so, by the time I took office, we once again found ourselves deeply in debt and unprepared for a Baby Boom retirement that is now starting to take place. When I took office, our projected deficit, annually, was more than $1 trillion. On top of that, we faced a terrible financial crisis and a recession that, like most recessions, led us to temporarily borrow even more.
[ ]....Kilmeade: Obama's Speech Was "Blame Bush." On the April 14 edition of Fox News' Fox & Friends, co-host Brian Kilmeade claimed that the theme of Obama's budget speech amounted to "blame Bush." Guest co-host Peter Johnson Jr. responded by saying, "All the way. Very perceptive, Brian." Kilmeade then stated, "How could you possibly, three years into your presidency, blame what happened eight years ago or along the way?"
[ ]....Carlson: "Obama Back To The Bush Blame Game When It Comes To The Deficit." Later on Fox & Friends, Carlson teased an upcoming segment by stating: "And as we told you, President Obama back to the bush Blame game when it comes to the deficit. But now that he's holding the checkbook, does that argument really work?" While Carlson spoke, on-screen text stated, "Bush blame game":
In Fact, Experts Agree That Bush Policies, Economic Downturn Are Largely To Blame For The Growing Deficit
CBO Projected $1.2T Deficit In January 2009 Based On Spending Bush Authorized; Actual Deficit Was $1.4T. In a January 7, 2009, report, the Congressional Budget Office (CBO) projected, based on spending authorized under the Bush administration, that the federal deficit in FY2009 would total $1.2 trillion. According to the CBO, the actual federal deficit for FY2009, which began during the Bush's last year in office, was $1.4 trillion. [CBO, January 2009 and January 2010]
CAP: "Single Most Important [Cause Of The Deficit] Is The Legacy Of President George W. Bush's Legislative Agenda." In an August 2009 analysis, the Center for American Progress (CAP) concluded that about two-thirds of the then-projected budget deterioration for 2009 and 2010 could be attributed to either Bush's policies or the economic downturn:
The report explained:
As for the deficit's cause, the single most important factor is the legacy of President George W. Bush's legislative agenda. Overall, changes in federal law during the Bush administration are responsible for 40 percent of the short-term fiscal problem. For example, we estimate that the tax cuts passed during the Bush presidency are reducing government revenue collections by $231 billion in 2009. Also, because of the additions to the federal debt due to Bush administration policies, the government will be paying $218 billion more in interest payments in 2009.
Had President Bush not cut taxes while simultaneously prosecuting two foreign wars and adopting other programs without paying for them, the current deficit would be only 4.7 percent of gross domestic product this year, instead of the eye-catching 11.2 percent--despite the weak economy and the costly efforts taken to restore it. In 2010, the deficit would be 3.2 percent instead of 9.6 percent.
The weak economy also plays a major role in the deficit picture. The failure of Bush economic policies--fiscal irresponsibility, regulatory indifference, fueling of an asset and credit bubble, a failure to focus on jobs and incomes, and inaction as the economy started slipping--contributed mightily to the nation's current economic situation. When the economy contracts, tax revenues decline and outlays increase for programs designed to keep people from falling deep into poverty (with the tax impact much larger than the spending impact). All told, the weak economy is responsible for 20 percent of the fiscal problems we face in 2009 and 2010.
President Obama's policies have also contributed to the federal deficit--but only 16 percent of the projected budget deterioration for 2009 and 2010 are attributable to those policies. The American Recovery and Reinvestment Act, designed to help bring the economy out of the recession is, by far, the largest single additional public spending under this administration. [CAP, 8/25/09]
CBPP: "[V]irtually The Entire Deficit Over The Next Ten Years" Due To Bush Policies, Economic Downturn." The Center on Budget and Policy Priorities (CBPP) published an analysis of federal deficits in December 2009, which was most recently updated on June 28, 2010, titled, "Critics Still Wrong on What's Driving Deficits in Coming Years: Economic Downturn, Financial Rescues, and Bush-Era Policies Drive the Numbers."