CEPR - Center for Economic and Policy Research

Multimedia

En Español

Em Português

Other Languages

Home Publications Blogs Beat the Press The Post Hasn't Noticed the Recession

The Post Hasn't Noticed the Recession

Print
Monday, 25 April 2011 05:07

If they had, they would have mentioned it in the context of Indiana Governor Mitch Daniels' comparison of the Bush era deficits to the current deficit. Daniels, who was director of the Office of Management and Budget under President Bush, made the comparison in saying that the deficits that he presided over in this position were small compared to current deficit.

This is true, but the reason is that the recession created by the collapse of the housing bubble was much deeper than the recession created by the collapse of the stock market bubble that President Bush faced when he took office. Not mentioning this fact is like blaming a city for its excessive use of water, without mentioning that it was combating a major forest fire. This is an important piece of information that should have been given to readers.

Comments (6)Add Comment
Mitch Daniels Fights Fire with Fire
written by izzatzo, April 25, 2011 6:45
Not mentioning this fact is like blaming a city for its excessive use of water, without mentioning that it was combating a major forest fire.


Not mentioning the Bush era tax cuts between the Bush and Obama deficts is like blaming the firefighters rather than the arsonists who poured gasoline on the fire after it was started by the stock market bust.
...
written by joe, April 25, 2011 7:01
The 2009 deficit of 10% of GDP was a "Bush Era Deficit" since FY 2009 budget was Bush's last budget. The on-budget deficit in 2004 was 4.9% of GDP even though unemployment was low and real GDP grew 3.6%.
It helps if you don't start in a hole
written by Allan Lane, April 25, 2011 8:33
It might also be pertinent to point out that Daniels started with a huge surplus, so he could burn through a lot of money before he reached deficit stage. He didn't start in a huge hole, as President Obama did.

Moreover, the national debt almost doubled under Bush. That might be a pertinent fact to include also!
Bush deficits
written by Randy Fritz, April 25, 2011 11:37
Another argument against the Post piece is that President Obama, in his budgets, has included all budget outlays, including military spending on foreign wars, instead of relying on the budget trick of asking for war spending resolutions apart from his annual budget. That alone could account for the differences in the Obama budgets (or come close to it).
Who are the deficit kings?
written by FoonTheElder, April 25, 2011 2:38
Prior to this recession, the five highest percentage increases in the deficit as a % of GDP since WW2 are the last five Republican presidential terms of Reagan, Bush 1 and Bush 2.

The current phony 'fiscal conservative' Republican deficit proposals are nothing more than more tax cuts for billionaires and big corporations. Our corporate media doesn't mention that the plan is to eliminate income taxes on corporations, estates, capital gains, dividends and interest. Of course, at the same time middle class wages will still be taxed.
...
written by urban legend, April 25, 2011 8:44
And without mentioning that Daniels as one of the architects of the Bush tax cuts helped start the fire.

Write comment

(Only one link allowed per comment)

This content has been locked. You can no longer post any comments.

busy
 

CEPR.net
Support this blog, donate
Combined Federal Campaign #79613

About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

Archives