Categorized | Makes Me Wanna Holler

The Inconvenient Truth About The Budget Deficit

One of the main Republican talking points is the trillion dollar budget deficit the President has incurred in each of his four years in office.  However, they don’t tell you what makes up the trillion dollars.  The Republicans attempt to argue that the President has been on a runaway binge of wasteful spending.  In reality, that’s far from the truth.  This truth actually destroys their argument and people realize why they would rather not talk about it.  When you break down the components of the deficit, you find out that it has nothing to do with out of control spending.  Let’s look at the main causes of the budget deficit:

 

  • Tax Revenue Shortfall Due to the Economic Crisis  —  470 billion each year
  • The Bush Tax Cuts —————————————  220 billion each year
  • Federal Unemployment Insurance ———————  110 billion each year
  • War in Iraq ———————————————–  105 billion each year
  • War in Afghanistan —————————————-  45 billion each year
  • Payroll Tax Cut ——————————————— 10 billion each year

Total Budget Deficit ———————————– 960 billion each year

So, actually, the trillion dollar deficit has nothing to do with President Obama over spending.  He pushed to extend federal unemployment benefits and for payroll tax cuts.  Both were bipartisan initiatives to boost the economy and provide relief for the long term unemployed.  This only leaves about $40 billion a year that one could attribute to new spending by the Obama administration.  Ironically, most of that money was used to pay for things like increased educational spending, green energy initiatives and 18 small business tax cuts.  The Republicans are totally misleading the American people about the deficit and, unfortunately, most of the media are silently allowing this to happen.  (This information was found by searching Google and several government web sites. It took all of 20 minutes).

The obvious and simple fact is that President Obama is not running a trillion dollar deficit.  He’s running an insignificant 40 billion deficit, with most of that money being invested in the country’s future.  Don’t let the Republicans spin you into believing the otherwise.  Most Republicans don’t like to hear this,  but it’s all Bush’s fault.  The Bush tax cuts blew a hole in the budget; the unnecessary war in Iraq blew another hole in the budget. The Bush administration ignored the war in Afghan and it has dragged on much longer than necessary, and it’s still blowing a hole in the budget.  The Bush administration’s lack of financial regulations and inept policies surrounding the housing market led to the economic crisis.  This, in itself, led to the tax revenue shortfall.  Like it or not, the inconvenient truth is that the Obama administration is taking the blame for a budget deficit caused by the Bush administration.

If Romney gets elected, he’s going to make everything worse.  All the budget busting issues listed above are still going to be there, except for the war in Iraq.  Romney not only wants to keep the Bush tax cuts in place, he also wants to tack on the Romney Tax Cuts, which will cost another $500 billion a year. His claim that it will be revenue neutral is the same position that Bush told us about his tax cuts.  My question: “Do these guys ever learn from their mistakes?”  Apparently not, and neither do the people that keep voting for them.  Unfortunately, most people believe the Republicans’ misleading talking points regarding the deficit and debt.  They have erroneously tried to equate deficit spending to ordinary household debt.  These are totally different; there is no comparison.  Americans need to stop falling for the Republican mind games.  Come on people.  Like Samuel L. Jackson says, “… wake the ‘freak’ up!” Well, that’s sort of what he said.

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