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A Picture Is Worth A Thousand Words (or trillions of dollars)

March 27, 2009
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I was recently “taken to task” in the comments of a previous post by Roland for (his word) bleating out conservative propaganda related to deficit spending.  Fair enough.  I am fiscally conservative and am admittedly dismayed at the levels of proposed government spending by President Obama and the Democrat controlled congress.  Nevertheless, liberals won the election and as such get to set policy and spending levels.  That said, I came across a chart that compares actual deficits by the Bush administation over the last eight years versus proposed deficits by the Obama administration.  The chart also compares White House and Congressional Budget Office deficit forecasts through 2019.  As they say, a picture is worth a thousand words (or trillions of dollars)



2 Comments leave one →
  1. March 27, 2009 3:31 pm

    With all due respect, the 2nd Great Depression calls for a different spending plan than, say, inheriting a surplus after the dot-com boom. Bush’s spending was pretty unforgivable.

    That being said, this is a fascinating chart. Do you notice how the deficit dips just in time for the 2012 election? And then zooms back up again?

    I don’t think that’s a coincidence.

  2. Bob permalink
    March 27, 2009 6:10 pm

    I appreciate your comments, Roland. I’m not quite ready to call this recession the “2nd Great Depression”. It may come to that – but let’s hope not. My trusty Webster’s dictionary defines a (financial) depression as “a period of low general economic activity marked rising levels of unemployment.”

    I would certainly agree that President Bush’s spending plan was, at least to this conservative, disappointing. But looking at the chart, it is clear that the deficit was heading in the right direction from 2003-2007. Clearly the economy was beginning to go south in 2007. How much of the deficit for 2008 is due to the slowing of the economy and how much can be correlated to the political changes in Washington DC from 2006? Can we even determine that? I don’t know. But this much is obvious: President Obama’s first year budget nearly quadruples the deficit that President Bush left. You said that Mr. Bush’s spending was pretty unforgivable. What then do you say about Mr. Obama’s spending?

    The curve in the projected deficits around 2012 (gosh, I wonder what happens that year?) is telling. It tells me there’s a lot of guess work and perhaps even some hope and change involved.

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