Friday, July 23, 2010

Who really has created spiraling deficits?

Today in the NY Times Mr. Krugman argues that Pres. Bush is responsible for the current budget deficit problems, amongst other things (http://www.nytimes.com/2010/07/23/opinion/23krugman.html?_r=1&ref=opinion).

But Keith Hennessey shows on his blog who is really leading a decade of spiraling deficits, Pres. Obama. (http://keithhennessey.com/2010/07/12/spiraling-deficits/)

As Mr. Hennessey points out, Pres. Bush's avg deficit, with 2008 included, was 2.7%. This is just above the historical avg of 2.6%. Pres. Obama's 9 yr projection (Mr. Hennessey explains why he uses 9 yrs on his blog) is 6.35% according to the CBO's current estimates. Granted a lot could happen in another 7 yrs (assuming Pres. Obama gets a 2nd term, which is looking unlikely) but to say that Pres. Bush was an out of control deficit spender does not match the historical record. Pres. Bush wasn't the most fiscally responsible President of all time, but he wasn't even close to the worst. Pres. Obama looks to be taking that title.

No comments:

Post a Comment