WHAT DID BAMMY REALLY INHERIT?
Posted by Andrew Roman on February 4, 2010
It’s fairly common.
Talk radio hosts will field phone calls from liberal callers who, when asked to offer their take on President Obama’s skyrocketing deficit numbers, will inevitably, unfailingly, reflexively bring up George W. Bush. (I think it’s a law now). After all, as is made evident on a daily basis by this administration, there wasn’t anything in all of recorded human existence impervious to W’s gross mismanagement and downright destructiveness, particularly during the dark wilderness that defined America’s “BB” days (Before Barack). The inexpungible mark President Bush left on this nation was (and is) so ubiquitous, even eight disastrous years (God forbid) of Barack Obama can (and will) be overlooked by rational people, because no man – not even a Messiah – could ever hope to salvage anything from the splintered wreckage left by W.
Barack Obama’s budget, even by conservative estimates, will catapult America’s deficit to levels never seen before – and yet somehow, astoundingly, Democrats are talking about fiscal responsibility. It’s like a Weight Watchers class going out for chili dogs and cheeseburgers after the meeting.
And while this administration continues to count on the stupidity of the American public to buy into their “let’s spend our way out of debt” approach, they have no problem continuing to cite the deficits they inherited from George W. Bush when confronted with challenges to their own spend-and-more-spend agenda.
“Look at the hole Bush dug us into before we got here,” they say.
“You best look at what Bush did before you start pointing fingers this way,” they’ll exclaim.
But as political analysts Dick Morris and Eileen McGann write at Townhall.com, Obamacrats are not telling the whole truth.
President Obama was disingenuous 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, George W. Bush ran a deficit of $485 billion. By the time the fiscal year started on Oct.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, and $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.
So what, pray tell, happened once The One set up shop in the White House?
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.
It’s interesting to note that while the President continues to claim he inherited a $1.3 trillion deficit, he takes full credit for rescuing America’s financial institutions.
I admit to being quite impressed.
Being able to speak so well out of both sides of the mouth is no menial task.
It is the TARP money – $700 billion – that is credited with saving the banks, which is more than half of the deficit Obama says he inherited from Bush. To date, as Morris and McGann point out, $500 billion of that has been paid back.
It takes real talent to do what Obama does. He blames Bush for the deficit created by TARP, but takes credit for the results.
The fact is, President Obama is the proprietor and general manager of the largest deficit and largest budget on record – and no matter how many pins lefties keep sticking their little “W” dolls, it won’t change the fact that Obama owns it now.
It is all his.