Posts Tagged ‘Bush deficit $485 billion’

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

February 3, 2010

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.”