It is hard to choose just one of the slurs hurled at President Obama by the Tea Party to pick apart. However, this one seems particularly pertinent. The Tea Party faction, which is now in de-facto control of the GOP, is attempting to portray the President and the Democrats as reckless spendaholics who will drive up the deficit and spend America into yet another recession.
Multiple studies from independent sources have proven that they have simply lied and lied and lied.
If one can be forgiven for lacing a piece of text with figures and facts, let’s take a brief look (or if you are in the Tea Party, a reality check):
The US government has already achieved $2.5 trillion in spending cuts over the next decade since 2011. This makes the hysterical calls from the Tea Party and conservative Republicans for more drastic spending cuts look more than suspect. The deficit is under control, and is not in danger of exploding any time soon. But that is only half the story.
If you wanna know who really got the deficit and spending out of control, I can give you one clue: he says he likes to paint in his spare time. . .
In 2009 the non-partisan Congressional Budget Office (CBO) projected a deficit of $1.186 trillion for the Fiscal Year (FY) 2009. This was made against the backdrop of the worst days of the Great Recession, which at the time was costing 800,000 jobs per month, and had forced the passing of the Troubled Asset Relief Program (TARP). Ultimately, the US Government ended FY 2009 with a deficit of $1.4 trillion.
The increased revenue, according to a former Reagan official, had nothing to do with increased spending or government programs like Medicaid. It was because under Bush tax revenues had taken a nosedive:
According to the Congressional Budget Office’s January 2009 estimate for fiscal year 2009, outlays were projected to be $3,543 billion and revenues were projected to be $2,357 billion, leaving a deficit of $1,186 billion. Keep in mind that these estimates were made before Obama took office, based on existing law and policy, and did not take into account any actions that Obama might implement…
Now let’s fast forward to the end of fiscal year 2009, which ended on September 30. According to CBO, it ended with spending at $3,515 billion and revenues of $2,106 billion for a deficit of $1,409 billion.
To recap, the deficit came in $223 billion higher than projected [in January], but spending was $28 billion and revenues were $251 billion less than expected. Thus we can conclude that more than 100 percent of the increase in the deficit since January is accounted for by lower revenues. Not one penny is due to higher spending.”
Under President Obama, the CBO forecast spending for the FY 2013 (which ended this September passed) at $3 trillion 46 billion, which is in fact less than the final spending forecast for President Bush. Bush’s tax-cuts resulted in the US Government collecting the lowest amount of revenue since 1950, a shocking 14.9%.
So, there it is ladies and gentlemen. In 2009 the deficit was a massive 10% of GDP; by 2017 it is forecast to have plummeted to just 2.4%.
It really is the economy, stupid.
h/t: Crooks and Liars