I am not in the business of defending Bush's spending. He had a complimentary Republican Congress through 2006 and frankly many on the right were dismayed by the profligate spending by so-called fiscal conservatives. But just looking at the chart it becomes clear that #1.) the 2001-2003 tax cuts did not balloon the deficit. In fact the deficit was in a downward trajectory until 2007 and #2.) something changed in 2007.
Obviously the Congress changed hands in 2007. The Democrats - Nancy Pelosi -took over. Until TARP was passed in late 2008 the deficit was seemingly manageable. TARP was dismaying, but it has been deemed successful by almost any measure since most of the money has been paid back. Only AIG's share and Obama's bailout of GM and Chrysler have yet to be paid back - but then the government owns a substantial share of GM and AIG.
So what really went wrong?
Start with 800 billion in ineffective stimulus and add a shaky economy and presto a trillion dollar deficit as far as the eye can see. This recession was primarily a result of the sub-prime mortgage meltdown with its many villains spanning government and the financial industry. As deep and profound as this crisis was we should be seeing light at the end of the tunnel but we're not. Why? Well, the Obama administration doesn't leave an encouraging taste in anyone's mouth. Business is wringing every ounce of production out of their current employees (just glad to have a job) and racking up profit and fat bank accounts. Until business is comfortable there will be no hiring. Revenue to the government will continue to stagnate, social spending will escalate and the deficit will grow.
We have to get these guys out of the White House in 2012.
CW
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