Where The Money Goes
ago, I watched helplessly as the Republican Party
systematically looted the U.S. Treasury for the benefit of
their rich pals. Over eight years they doubled the national
debt to over $10 trillion dollars.
I also knew exactly what
they'd do to fix the problem...
blame the next president. And, boy, have they ever.
chortle to themselves, this economic becacle is all Barack
Obama's fault. RNC chairman Michael
Steele himself recently blamed Mr. Obama for "Ten trillion
dollars of debt in the past six months."
It'd be laughable except this country
is loaded with enough politically
cretins all too willing
vicious swill promulgated by Fox News that's it's starting
to take root in middle America. This is bad.
So let's take a moment to put everything in better perspective,
ala The Wonk Room at thinkprogress.com:
Six Years After
Cheney Said ‘Deficits Don’t Matter,’ The
National Debt Hits A 50-Year High
In 2002, Vice-President Dick Cheney and the Bush administration’s
economic team met to discuss a second round of tax cuts, which
would follow Bush’s 2001 cuts. At the meeting, “then-Treasury
Secretary Paul H. O’Neill pleaded that the government — already
running a $158 billion deficit — was careening toward a fiscal
crisis.” Allegedly, Cheney replied by saying that “deficits
Six years later, the Bush administration’s consistent belief
that deficits don’t matter has increased the national debt
to over $10 trillion. This is the highest dollar amount ever, and
pushes the debt to 69% of the gross domestic product, which is
the highest percentage since 1955. Bush has presided over
the largest increase in the debt of any president in history. When he took
office, “the national debt stood at $5.727 trillion.” In
eight years, there has been an increase of over 70%.
And the Bush administration has seemingly not learned any lessons
from this, as the FY2009 budget had a near-record deficit of $407
billion. This deficit was calculated before the administration
spent $900 billion rescuing troubled financial institutions and
proposed a $700 billion economic bailout. The bailout bill put
forth by Treasury Secretary Henry Paulson increased the federal
debt ceiling - the amount to which the debt is legally allowed
to go - to $11.3 trillion.
As the Center for Budget Policy and Priorities has shown, 42% of
the “fiscal deterioration” and explosion of the deficit
that occurred under Bush was due to tax cuts:
The key factors have been large tax cuts and increases
in security-related programs. For fiscal 2009, some $1 trillion
of the $1.3 trillion
deterioration in the nation’s fiscal finances stems from
policy actions, and tax cuts account for 42 percent of this $1
The conservative practice of cutting taxes while spending millions
on wars has led to the largest debt in half a century, and Sen.
John McCain (R-AZ) is proposing exactly the same policies. An analysis
by the Center for American Progress found that if McCain’s
economic plan was in place for eight years, it would leave a debt
of $12.7 trillion, besting Bush’s record.