Good article in the Center on Budget and Policy Priorities:
Economic Downturn, Financial Rescues, and Bush-Era Policies Drive the Numbers
By Kathy Ruffing and James R. Horney
| The events and policies that have pushed deficits to these high levels in the near term, however, were largely outside the new Administration’s control. If not for the tax cuts enacted during the presidency of George W. Bush that Congress did not pay for, the cost of the wars in Iraq and Afghanistan that were initiated during that period, and the effects of the worst economic slump since the Great Depression (including the cost of steps necessary to combat it), we would not be facing these huge deficits in the near term. |
This non-partisan organization focuses on fiscal policy and public programs that affect low- and moderate-income families/individuals. Their analysis shows that the budget deficit will continue to grow if the Bush tax cuts remain. They don't distinguish the different aspects of the tax-cuts; i.e., "high income", which Obama & Democrats want to let expire, and "middle/low income", which they plan to renew.
The graph to the right illustrates the impact of the various programs on the growth of the deficit into 2019. It is quite unfortunate that none of the high profile Republican politician and pundits, or conservative media (CNN or FOX) bother to read anything that doesn't come out of their own think-tanks.
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Without the economic downturn and the fiscal policies of the previous Administration, the budget would be roughly in balance over the next decade. That would have put the nation on a much sounder footing to address the demographic challenges and the cost pressures in health care that darken the long-run fiscal outlook.[7] |
