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Obama Deficit to Exceed 8 Years of Bush in Half the Time
original article written by Net Advisor™
President Obama is running a federal deficit that will likely exceed the deficit created by President Bush, but in just half the time.
We hear the Washington rhetoric and trivial actions to make minor and temporary spending freezes. However, this is not the solution to solving America debt crisis.
The latest forecast is that the U.S. will add another $1.48 Trillion to the deficit this year (2011) according to the Congressional Budget Office (Source: Reuters).
If one then adds the prior $3.039 Trillion Obama stimulus and the 2011 estimated deficit of $1.48 Trillion, we have a total thus far of $4.48 Trillion Obama debt. According to CBS News, the Obama Administration will have added (at least) $5.9 Trillion to the deficit in just 4 years. That amount exceeds the $4.9 Trillion racked up by the Bush Administration. The only problem is the Obama Administration will have exceeded Bush’s spending in just four years instead of eight.
“The Debt increased $4.9 trillion during President Bush’s two terms. The Administration has projected the National Debt will soar in Mr. Obama’s fourth year in office to nearly $16.5-trillion in 2012. That’s more than 100 percent of the value of the nation’s economy and $5.9-trillion above what it was his (Obama’s) first day on the job.”
The Bush deficit included 2 recessions (2000-2002 – The Dot-com Bust); (2007-date recession); 9/11 (2001), Hurricane Katrina (2005) with Katrina’s costs running some $300 Billion, Iraq ($709 Billion), and Afghanistan ($171.7 Billion). Iraq had already been winding down operations prior to Bush leaving office which is also confirmed by the spending chart on Iraq.
The $700 Billion TARP program are loans and only added to the deficit if not paid back to the Treasury. Major banks had to effectively beg (lobby for approval) toward the Obama Administration to repay these loans with interest. All major banks and investment banks have repaid TARP (Sources: Bloomberg, CNN). The remaining TARP losses as of 10-01-2010 is estimated under $50 Billion, however this does not fully include the government mortgage bailout of Fannie Mae and Freddie Mac (Source: NY Times via CNBC PDF).
The Obama deficit so far includes existing said debt plus 2011 projections. This includes U.S. funding to rebuild Iraq ($161.4 Billion existing costs; plus $51.1 Billion requested for FY2011 = $212.50 Billion); the Afghanistan war and simultaneous (futile) rebuild efforts ($164.4 Billion existing costs; plus $119.4 Billion requested for FY2011 = $283.8 Billion) (Source: FAS.org PDF Chart, 1 page).
Obama’s debt also includes $3.039 Trillion in “economic stimulus,” which has done nothing but increase the true unemployment rate, and simultaneously increase the National Debt by some 40% during Obama’s first four years as President. The National Debt was $10.024 Trillion by Fiscal Year ending September 2008; (See Current National Debt) (Source: U.S. Treasury).
President Obama will have a hard time continuing to argue that he “inherited this deficit,” when Obama himself did nothing to stop the debt increases, and worse, spent twice as fast as Bush spent in just half the time.
Additional links for further reading:
- Congressional Budget office (CBO) Budget Outlook 2011-2021 Summary Report (PDF 2 pps).
- The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations Since 9/11 (09-02-2010) (PDF 57 pps)
- 2011 Budget and Economic Outlook Fiscal Years 2011 to 2020 (CBO) (PDF 192pps) (share link)
Short link: http://www.netadvisor.org/?p=7454
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