Deficit Straight Talk: Bush Out Spends Obama 3 to 1 (by Roger Ingalls)

I’m tired of the Republican trash talk about how fiscally irresponsible the Democrats are when it comes to government spending and economic policy. Those that point fingers and yell the loudest are usually the ones with something to hide. It’s time to set the record straight.

Republican administrations are responsible for nearly 80% of the $14 Trillion deficit. This massive debt building started with Ronald Reagan and skyrocketed under George W Bush. The chart below must be painful for conservatives to look at, especially for the followship that can comprehend such data (Democrats are in blue and Republicans are in Red, source: U.S. Dept. of the Treasury). Democrats have historically maintained or decreased the deficit while the Republicans recklessly spend.

click chart for larger view

Let’s compare our two most recent presidents. The chart below is from the New York Times and is based on data from the Congressional Budget Office. This chart shows contribution to the deficit from policy decisions made during each administration. Obama’s figures are forecasted as a two term president. As we can clearly see, Bush’s massive debt is three times greater than Obama’s.

click chart for larger view

Most striking is the debt contribution from Bush’s tax cut policy that predominately benefited the wealthiest Americans. This policy change alone increased the deficit by $1.8 Trillion and is the single biggest debt building event in American history.

Conservatives are hell-bent on maintaining the Bush tax cuts arguing they help stimulate the economy by giving the rich more money to invest (a revisit of the failed Reaganomic trickle down philosophy). Just one problem, it doesn’t work. GDP growth during Bush’s presidency was a dismal 1.66% – the lowest since the 1940s. Even if the negative affects of the 2008 financial crisis are removed from the data, the Bush era is still a 60 year low with a GDP of 2.39. During this same six-decade period, the Democrat administrations of Kennedy/Johnson, Clinton and Carter had the best GDP growth performances (5%, 4.3% and 3.7% respectively). Does it get any clearer than that, folks? This data comes from the U.S. Dept of Commerce Bureau of Economic Analysis.

Takeaways:

1)      The Republican policy of lowering taxes to benefit the rich and sold to main-street America as a growth stimulus, does not work. It failed under Reagan and it was catastrophic under Bush.

2)      Republicans spend heavily on defense because it is an easy sell to the public and it benefits big businesses that contribute heavily to their political campaigns. Keep in mind, 75% of the jobs created in America come from small businesses, not the big ones chased by Republican politicians.

3)      To offset their heavy spending, conservatives try to look responsible by cutting social programs that help the poor and elderly. They sell this by highlighting government excesses that they have created in the first place.

4)      Financial policies created by Democrats have historically out-performed Republicans ones because they are inherently balanced with responsible spending and appropriate taxation for a modern society.

Important Note: The Bush tax cuts now expire at the end of 2012. We must hold our representative’s fingers to the fire and make sure they don’t vote to extend this rich man’s benefit package. Again, trickle down Reaganomics never has and never will work!

Closing Challenge: Show me some unbiased government data that even remotely suggests Republican financial policies are better for main-street America than the ones used by Democrats. Real data, not uneducated Tea Party trash talk!

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Roger Ingalls is well travelled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.

American Revolution 2.0 – A Blood Bath (Roger Ingalls)

The following iconic phrases are no longer valid.

“…Governments are instituted among Men, deriving their just powers from the consent of the governed…”, Declaration of Independence.

“…government of the people, by the people, for the people…”, Lincoln’s Gettysburg Address.

It is painfully clear to half the American population that we are now governed by corporations.

Yes, we can still vote but our political choice ultimately goes to the one who can buy the most media sound bites via funds received from corporations, political action committees, and the rich. When the chosen ascend to their thrones, the big funders get their rewards and we, the people, are forgotten.

The American Middle-Class is becoming a thing of the past. Men, women and children are suffering. With all the hurt and pain inflicted on Main Street by the irresponsible actions of Wall Street and the Big Banks, conservative politicians are still accelerating the transfer of our remaining wealth to the rich and big corporations by providing them with unprecedented lower tax rates and loop-holes.

Options to stop Middle-Class genocide are limited. The law no longer sides with real people due to recent decision by the conservative members of the Supreme Court. Artificial persons (corporations) have been granted the same rights as real people. These recent decisions have, essentially, created a super artificial person with constitutional rights, big influential corporate wealth and the players behind these corporations have the added bonus of being protected against legal action.

Out of options and desperate, Americans may be forced into a second revolution.

Listening to the political sound bites of the day, I wondered what an American Revolution 2.0 would be like. Then it hit me, this would be a very bloody affair. This would be American against American. Upon further thought, I realize a new revolution would be unlike the original war against the British and more like the French and Russian revolutions where the desperate targeted the wealthy ruling class.

I’m inclined to believe that a real and bloody revolution is unlikely but the escalating chatter on social media is worrisome.

Big time CEOs, Wall Street executives and their political cronies may want to think long and hard before driving the stake further into the heart of Main Street America.

Who would be first in line to face the guillotine?

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Roger Ingalls is well travelled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.