Hi Uncle Lou!
Great to hear from you! This email is a little hard to follow because it jumps from the Dow, to GDP, to unemployment, then focuses on the deficit exclusively, but I’ll jump in anyway.
I came across this chart today, and it really shows how the US fits in all the world economic slowdown.
We’re actually still doing pretty well compared to Europe, and our drop was pretty similar. Our recovery has been better, and that’s clearly because they’re trying to starve their way out of it, especially in the UK. So we’re pretty lucky in my opinion that Congressmen like Ryan haven’t had their way, or we’d be right down there with the UK.
I keep seeing things that say Obama tripled the budget or the deficit and none of them make sense. Here’s a chart of the actual deficit:
When I first looked at it, I thought that really steep line shouldn’t be red, because most of it is in 2009. But then I read this, taken from the conservative Cato Institute:
The 2009 fiscal year began October 1, 2008, nearly four months before Obama took office. The budget for the entire fiscal year was largely set in place while Bush was in the White House.
Of course, the point of the email is that the President doesn’t matter, that Congress set the budget and it’s their fault. But it does matter, budgets originate in the House but follow the guideline from the President, and $700B of that fiscal year’s budget was the Bush bailout of the banks.
And one thing about Bush is that he got his way, a lot. He was amazingly good at that. The exploding deficit was big news back in 2008 and Bush’s last proposed budget was a deficit disaster back then too. Here’s how the Washington Post described it:
The new budget underscores Bush’s inability to get control of spending over the course of his seven-year tenure, a failure that has concerned even his conservatives allies. The problem is projected to get worse in coming years with the retirements of the baby-boom generation, a big obstacle to the ambitious tax-cutting or spending plans of the leading presidential contenders.
Of course I do know the 2009 spending eventually included the first stimulus, but as I mentioned at the start, I think that’s a big part of the policies that are setting us apart from the UK and Europe.
Glad you’re back in the game and sending me more emails again! I will bet that this one gets sent around a lot this summer and fall.
Hope you and Aunt Jenny are well! Tell her I said hi!
Fwd: THE “MESS” and how OBAMA inherited it??