The Truth About Obama’s Bogus Claim Of Inheriting A $1.3 Trillion Deficit

Here’s Dick Morris setting the record straight on Obama’s fallacious claim that he “inherited” a $1.3 trillion deficit from George Bush:

BEHIND OBAMA’S PHONY DEFICIT NUMBERS
By Dick Morris
02.1.2010

President Obama was disingenuous today when he said that the budget deficit he faced “when I walked in the door” of the White House was $1.3 trillion. He went on to say that he only increased it to $1.4 trillion in 2009 and was raising it to $1.6 trillion in 2010.

As Joe Wilson said “you lie.”

Here are the facts:

In 2008, Bush ran a deficit of $485 billion. By the time the fiscal year started on October 1, 2008, it had gone up by another $100 billion due to increased recession-related spending and depressed revenues. So it was $600 billion. That was the real Bush deficit.

But when the fiscal crisis hit, Bush had to pass TARP in the final months of his presidency which cost $700 billion. Under the federal budget rules, a loan and a grant are treated the same. So the $700 billion pushed the deficit — officially — up to $1.3 trillion. But not really. The $700 billion was a short term loan. $500 billion of it has already been repaid.

So what was the real deficit Obama inherited? The $600 billion deficit Bush was running plus the $200 billion of TARP money that probably won’t be repaid (mainly AIG and Fannie Mae and Freddie Mac). That totals $800 billion. That was the real deficit Obama inherited.

Then…he added $300 billion in his stimulus package, bringing the deficit to $1.1 trillion. And falling revenues and other increased welfare spending pushed it up to $1.4 trillion.

So, effectively, Obama came close to doubling the deficit.

His program of fiscal austerity in this new budget is a joke. If he wanted to lower the deficit, here’s what he could do:

1. Cancel the remaining $500 billion of stimulus spending and

2. Cancel the $300 billion of spending in stimulus II.

Presto! The deficit is cut in half.

Those are the real numbers.

And for the record, it becomes impossible to blame Bush OR Republicans for the 2008 fiscal year spending that occurred in 2009 for the simple fact that Republicans OPPOSED that spending virtually unanimously.

This is part of the slimey lies that characterize Barry Hussein.

But there’s more.  While blaming Bush for that $500 billion of TARP money that has been repaid, Obama wants to take it and use it for more of his own projects.

That money has been repaid.  You can’t put it on Bush’s tab, demonize him for it, and then break the law by refusing to put it back into the Treasury and pay down the debt.

So Obama is – once again – a liar.  He doesn’t WANT to return that TARP money which should legally be used to pay down the deficit because then he 1) couldn’t demonize Bush for the “$1.3 trillion dollar deficit” that he really didn’t inherit from Bush; and 2) couldn’t use that money – that BUSH money – for his own political ends.  While continuing to blame Bush for it.

That’s just dishonest.

I might point out that Bush’s TARP bank bailout plan failed the first vote as REPUBLICANS voted against it.

But there’s more to it than that.  A discussion on Sayanythingblog begins to reveal more than Obama wants you to know:

The last budget approved by a Republican Congress and a Republican President was the 2007 one.  That turned in a deficit of about 160 Billion dollars.

The the Democrats took over Congress.  Obama and his cohorts tripled the deficit.

Then they tripled the deficit again for the 2009 (current year budget.)

In no way did Obama oppose these higher budget deficits.

I’m not giving Bush a free pass, but these deficits are Obama’s fault as much as anyone.

Here’s a dirty secret: Bush didn’t increase the deficit – the Democrats running Congress did that.  Under the separation of powers, Bush couldn’t spend a single dime unless Congress authorized him to spend it.  (Hint: that also explains why Clinton was able to provide a surplus: Republicans were in charge of Congress and FORCED him to be spendthrifty).

And so we come to the words of Rep. Jeb Hensarling, the senior Republican on the House Budget Committee.  He pointed out this little factoid that Democrats and their mainstream media allies don’t want you to know:

The old annual deficits under Republicans have now become the monthly deficits under Democrats:

In the 12 years that Republicans controlled the House, the average deficit was $104 billion (average of final deficit/surplus FY1996-FY2007 data taken from Table F-1 below).  In just 3 years under Democrats, the average deficit is now almost $1.1 trillion (average of final deficit/surplus FY2008 and 2009 data taken from Table F-1; FY2010 data taken from Table 1-3).  Source: CBO January 2010 Budget and Economic Outlook

In reality, Obama didn’t “inherit” anything: he personally voted for virtually all the spending under the Bush presidency that he is now whining about.  While he may have “inherited” it as president, he voted for it as senator.

So Obama is literally saying, “All that stuff that I voted for was all Bush’s fault.”

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8 Responses to “The Truth About Obama’s Bogus Claim Of Inheriting A $1.3 Trillion Deficit”

  1. Dr Democrat Says:

    You might be entitled to your opinion Larry but not your version of the truth. In 242 years our total borrowed debt was 1 trillion. Under 8 years of Bush’s disasterous policies, it went to 2.5 trillion. Why? You show the Bush annual deficits without the cost of 2 wars and off budget borrowing. To their credit Obama and the Dems add these numbers in their budget figures where before the Repubs played their little shell games. And still the economy tanked under the Bush administration. Your amnesia won’t let you remember what and how bad it was. Go back and read your history. You don’t have to go far..Try back to 2006. It will make you sick. Larry, don’t blame the Fireman for the water damage to your house that you set on fire.

  2. Michael Eden Says:

    You’ve got a pretty good rant going against this “Larry” guy, but for the life of me I don’t even know who that is.

    Talk about a warped version of reality; do you always see this “Larry”? Does he talk back to you? Do you argue with him on buses and subway trains while other people nervously shy away from you?

    The overall cost of the war ended up being figured in on Bush’s deficit figures.

    I’ll refute your claim about Bush and his annual deficits not including his wars while you fight it out with your invisible opponent Larry. From Heritage:

    UPDATE: Many Obama defenders in the comments are claiming that the numbers above do not include spending on Iraq and Afghanistan during the Bush years. They most certainly do. While Bush did fund the wars through emergency supplementals (not the regular budget process), that spending did not simply vanish. It is included in the numbers above. Also, some Obama defenders are claiming the graphic above represents biased Heritage Foundation numbers. While we stand behind the numbers we put out 100%, the numbers, and the graphic itself, above are from the Washington Post. We originally left out the link to WaPo. It has now been added.

    For the record in the year 2006 – the last year Republicans ran Congress – unemployment was at 4.4%, and that rate had been going down. What happened to that rate – and to the economy – after Democrats who planned to fix everything???

    As to debts and deficits…

    The Wall Street Journal put it this way:
    Mr. Obama cannot dismiss critics by pointing to President George W. Bush’s decision to run $2.9 trillion in deficits while fighting two wars and dealing with 9/11 and Katrina. Mr. Obama will surpass Mr. Bush’s eight-year total in his first 20 months and 11 days in office, adding $3.2 trillion to the national debt. If America “cannot and will not sustain” deficits like Mr. Bush’s, as Mr. Obama said during the campaign, how can Mr. Obama sustain the geometrically larger ones he’s flogging?

    The old annual deficits under Republicans have now become the monthly deficits under Democrats:

    In the 12 years that Republicans controlled the House, the average deficit was $104 billion (average of final deficit/surplus FY1996-FY2007 data taken from Table F-1 below). In just 3 years under Democrats, the average deficit is now almost $1.1 trillion (average of final deficit/surplus FY2008 and 2009 data taken from Table F-1; FY2010 data taken from Table 1-3). Source: CBO January 2010 Budget and Economic Outlook

    Oops for you.

    There’s no question that Republicans spend too much. But anybody who suggests that Democrats don’t spend FAR, FAR more than Republicans ever dream of spending are the type of people who rant to invisible opponents that only they can see.

  3. johnmwilliams Says:

    The truth about the deficits:

    http://newamericanpatriots.files.wordpress.com/2010/08/deficits.jpg?w=450&h=245

  4. Michael Eden Says:

    I don’t have any idea where your chart came from or how accurate/honest the numbers are.

    But let me take it for granted for the sake of argument.

    My next statement would be to observe that the deficits generated by World War II would be far, far worse. So by your reasoning I guess we should have refused to fight that war, too.

    I would also point out that 60% of Democrats in the US Senate voted for this expensive Iraq War. And I would point out what the most prominent Democrats in the nation said on the record prior to and after the beginning of the Iraq War.

    Truth or Fiction
    Freedom Agenda
    Snopes

    Democrats were “for that war before they were against it.” Which makes them particularly despicable.

    Then I would bring in the costs of the Afghanistan War, which Obama has been for from the getgo. What impact does Obama’s war have on the gigantic deficit we’re compiling now?

    All that to say you’ve got a rather meaningless chart there.

  5. dr.WHO??? Says:

    blah blah blah blah…ewe’ve been listening to way too
    much oxyWAD, boreTz, hammity and the rest of the
    propagandameisters. joseph goebble’s sites do NOT
    serve you well. your entire rant is almost exactly the
    same crap one reads at newsmacks, worldNUTdaily
    and the rest of the republicOn propaganda sites, to
    accompany the baloney republicOns gobble up at
    faux news and the aforementioned propagandists.

    in reality, bush and the republicOns dumped a load of
    crap in obama’s lap, and then went all anal about it.

    face it, republicOns are serial spenders when they have
    CONtrol, and then they go all fiscally responsible when they
    don’t. it’s the nature of “republicOnism” along with
    simply accusing their opposition of doing what republicans
    are doing and then sitting back while the spineless democratic
    leadership lets all the republicOn lies slide.

    i’d like to have nickel for every CONservative article i’ve read
    blaming the bailout of gm, aig, citibunk, bunk of america and the
    rest of the corporate scammers on obama when it was bush that
    signed those bailouts, put them in axeshun, defended them and
    insisted he’d do it again if he had to. the same with TARP. republicOn
    bums, time and again, have written “obama’s TARP,” obama’s bailout
    of GM” ad nauseum.

    republicOns are so conned…

    i”m just sayin’…

    “I’ve abandoned free-market principles to save the free-market system” –George w. Bush

    “Deficits don’t matter”
    the DICK cheney

    lmao!

  6. Michael Eden Says:

    Dr Who,

    I understand. George Bush’s given name was Emanuel Goldstein, and Big Brother Obama is entirely right to blame him for everything that has happened. The third year of Obama’s presidency is hardly long enough to even begin to hold him responsible for his presidency.

    And his Ministry of Truth has all the necessary documentation to blame Bush, too.

    I would submit that your soul swims in lies, and you are as happy as a clam in that sewer.

    The thing I laugh at the most about your post is your final two quotes:

    “I’ve abandoned free-market principles to save the free-market system” – George w. Bush

    “Deficits don’t matter” – the DICK cheney

    I then ask, “Were those guys WRONG?” Because I point out in article after article that that mindset is utterly insane. As Bush points out, “HE ABANDONED FREE-MARKET PRINCIPLES!!!”

    So on the one hand, you demonize Bush – who was never an uber conservative to begin with. But on the other hand, you champion Obama who took Bush’s abandonment of free-market principles to heights never seen outside Nazi Germany or the Soviet Union.

    Meanwhile, the Republicans have made it their mantra that they made mistakes and learned their lesson. It was that demand that we RETURN to free-market principles, and it was that demand that we RETURN to cutting deficits, that allowed them to hand Obama the biggest political shellacking in 70 years.

    Which is to say that you WANT what Bush did. You WANT an abandonment of free market principles and you WANT staggering deficits.

    Which is to say that you are a complete hypocrite, and frankly a complete waste of time.

  7. Nef Amun Says:

    Micheal, what about the 9 trillion projected budget deficit Obama mentioned along with the 1.3 trillion budget deficit? I know you said republicans unanimously opposed 2008-2009 spending. Secondly, what was the 9 trillion projected for and why would the dems go through with it, if they were against the spending?

  8. Michael Eden Says:

    Nef,

    I won’t waste tune talking about what Obama SAID. Because he is a liar without shame, and he says one thing and does another, or says one thing, does another, and then says a third thing having nothing whatsoever to do with what he said previously or what he in fact did.

    Let’s look at the actual and official budget Obama submitted. It got voted down 97-0 in the Senate because of Obama’s spending was so insane that not even ONE Democrat could support it.

    http://www.humanevents.com/article.php?id=43793

    THAT’S all that matters; not any of Obama’s bullcrap.

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