In article ,
"Robert Green" wrote:




President Bush inherited a budget surplus (the first in decades).
Jeez Louise, how many times I gotta tell ya. The Surplus was gone
before Bush's first budget hit the stands. According to the CBO, the
U.S. last had a surplus during fiscal year (FY) 2001. This was the one
that started in October of 2000, a full month before the election.





What really troubles me, aside from the hypocrisy of those wanting to blame
Obama for spending increases properly credited to Bush, is that the increase
in government spending isn't the only factor that has caused the deficit.
What some pols conveniently (deliberately?) forget is the precipitous
fall-off in government revenue from taxes.
Largely related to the biz cycle since 2006 or so. The fall in taxes
largely follows the fall in income.



There are two reasons for the collapse. The Bush tax cuts, which reduced
revenue, and the weak economy, which has reduced the incomes and capital
gains upon which most federal taxes are based.
But they did not. Look at the pre-recession and you'll see rev went
up. Every year. In fact if you look at the scoring of the Joint
Committee on Taxation, you will note that the fall off the first wasn't
as bad as they said it would and it turned back positive the second year
with the JCT saying it would fall for the entire 10 years.

President Bush cut taxes in 2001 and 2003. These tax cuts hit federal
revenue, while federal spending growth continued. This combination
ballooned the deficit in the early years of the Bush presidency.
It did not until the biz cycle kicked in.


By the middle years of the Bush presidency, however, on the strength of the
housing boom and strong economic growth (much of it, unfortunately, was
illusory: built on borrowed money with too much leveraging and too little
real collateral) federal revenues began to grow rapidly.
Fueled by a bubble like the Clinton year's dot com surplus.

By 2007, in fact,
the gap had almost closed. But that huge surge wasn't sustainable. When
the housing bubble burst the economy plunged into deep recession. And then
President Bush handed President Obama the worst recession in more than 70
years, leaving Obama to both take the blame and clean up the mess.

Heavy lies the head that wears the crown.


In apportioning blame, it's important to note that Congress approved all of
the decisions by both Presidents regarding the economy. Both sides have
contributed mightily to the mess that is our current economy.
And for the most part in a decidedly bipartisan manner. I saw a study a
year or so indicated that most of the really bad happening involving the
federal government took place when the vote was heavily bipartisan. Be
carefule what you wish for (g).

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People thought cybersex was a safe alternative,
until patients started presenting with sexually
acquired carpal tunnel syndrome.-Howard Berkowitz