Tuesday, August 23, 2011

"Spending, not entitlements, created huge deficit"

How is it that the Federal Debt is going to rise more in Obama's first four years than in Bush's eight? Well, a lot of it has to do with the recession and the counter-cyclical fiscal policies in place (economy shrinks, tax revenues drop, direct transfer payments [welfare, food stamps, unemployment, medicaid] increase). But certainly not all.

Byron York:
There is no line in the federal budget that says "stimulus," but Obama's massive $814 billion stimulus increased spending in virtually every part of the federal government. "It's spread all through the budget," says former Congressional Budget Office chief Douglas Holtz-Eakin. "It was essentially a down payment on the Obama domestic agenda." Green jobs, infrastructure, health information technology, aid to states -- it's all in there, billions in increased spending.

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