Such Short Memories: The Worst President Since World War II? Uh, Guess Again!

Reblogged from

When George W. Bush was inaugurated president of the United States on January 20, 2001, the unemployment rate stood at 2.4 percent. By the time Dubya completed his second term in office on January 19, 2009, the unemployment rate at risen to 7 percent. When Dubya took office in 2001, he was left with a budget surplus of $127.3 billion. When he completed his second term, he left a budget deficit of $1.4 trillion.

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The Mythical Budget Deficit

— by Rich Dunn, NV Rural Democratic Caucus, 2nd Vice Chair

On Monday the treasury budget for December was released, and guess what. The federal government ran a surplus of $53.20 billion. Yes, I said surplus. It got little attention because budget surpluses have become relatively routine of late. Here are the treasury budgets for the previous seven months:

Jun +$116.5 billion
Jul -$97.6 billion
Aug -$147.9 billion
Sep +$75.1 billion
Oct -$91.6 billion
Nov -$135.2 billion
Dec +$53.2 billion

You’re seeing that right. The budget was in surplus in three of the last seven months of 2013.

The deficit for Fiscal Year 2013 totaled $680.3 billion, which was down from $1.09 trillion in 2012—the fourth consecutive year when deficits were over a trillion dollars. The Obama administration is now running annual deficits less than half the size of the one he inherited from Bush in 2009, and economists are already speculating that Obama’s budget for Fiscal Year 2016 could well be in surplus.

The government should not be running a fiscal surplus when aggregate demand is still lagging in the macro economy. The country’s infrastructure is falling apart and we should be fixing it right now because the money is there and isn’t being used to expand employment or investment in the private sector. Instead coporate balance sheets are hoarding cash and using it to pay special dividends and stock buybacks for the investor class. That money should be put to work investing in America!

22 Congressmen Demand Keeping Sequestration Budget Cuts That Leave Kids Out Of Classrooms And The Elderly Out Of Food

by Bryce Covert

Fiscal Cliff

Three Republican Representatives, Mick Mulvaney (SC), Jim Jordan (OH), and Steve Scalise (LA), sent a letter on Thursday to House Speaker John Boehner (R-OH) and Majority Leader Eric Cantor (R-VA) advocating to keep spending in any agreement that results from the current budget conference at the sequestration level of $967 billion in 2014. Their letter has 19 other signatures so far and lawmakers can sign un until Monday.

Claiming that Democrats “want the diversion of another shutdown” to deflect from the troubles with Obamacare, they write, “[W]e encourage you to allow a vote as soon as practicable on a full-year ‘clean CR’ funding bill at the levels established in law by the Budget Control Act,” which set sequestration’s automatic cuts and “is the law of the land.” It also says, “Our Democrat colleagues are now threatening to shut the government down in order to change that. We should not permit that to happen.”

Other Republicans have been worried about sequestration’s cuts, particularly to defense spending. Reps. Jim Bridenstine (R-OK) and  introduced a bill this week that aimed to cancel sequestration cuts to the Department of Defense for the next two years. And Rep. Paul Ryan’s (R-WI) negotiations with Sen. Patty Murray (D-WA) look set to yield a higher spending level closer to $1 trillion for next year, which would cancel sequestration’s cuts to programs while keeping its deficit reduction through higher revenues from increased fees. “Most Republicans — conservatives and moderates alike — are hoping Ryan and Murray succeed, because they believe sequester level spending is unsustainable,” Jake Sherman writes in Politico.

But Mulvaney, Jordan, and Scalise aren’t the only Republicans who have come out in favor of keeping sequestration. While Republicans originally tried to pin the blame for the cuts on President Obama, at least eight others have said that they’re a good way to cut the budget and something they want to keep. House Republicans also released a budget plan in July with even deeper cuts, although when it came time to implement the specifics so many balked that it didn’t get a vote. Yet they again made sequestration a baseline leading up to the government shutdown by passing a continuing resolution at those levels in the House.

Sequestration’s damage had a wide-ranging effect this year, impacting the elderly, cancer patients, low-income renters, domestic violence survivors, the homeless, preschool and K-12 students, scientists, the long-term unemployed, and Department of Defense workers, among others. It also reduced economic growth and consumer spending. Yet things get even worse next year if the cuts stay in place, as many of the accounting gimmicks and emergency measures departments took to dampen the blow will no longer be available. The damage compounds the longer the cuts go on. On the other hand, the deficit would look better if the cuts were cancelled and the economy could add as many as 1.6 million jobs and 1.2 percent to GDP growth.

This material [the article above] was created by the Center for American Progress Action Fund. It was created for the Progress Report, the daily e-mail publication of the Center for American Progress Action Fund. Click here to subscribe.

Boehner: The Nation Will Be On ‘The Path’ To Default If Obama Doesn’t Accept GOP Demands


boehner_debtHouse Speaker John Boehner (R-OH) said the nation would default on its debt later this month if President Obama does not agree to GOP’s demands to cut spending and change parts of the Affordable Care Act.

Appearance on ABC’s This Week on Sunday, Boehner agreed that the risks of defaulting would be “catastrophic,” leading credit markets to freeze, the dollar to lose its value, and interest rates to skyrocket, precipitating another financial crisis. But, he insisted that “the president is putting the nation at risk by his refusal to have a conversation”:

GEORGE STEPHANOPOULOS (HOST): Let me press that. There have been some reports that you have told your own members that you would be willing to put a debt limit on the floor that would pass with democratic votes, even if it didn’t get a majority of the republican caucus. Is that no longer true?

BOEHNER: My goal here is not to have the United States default on its debt. My goal is to have a serious conversation about those things that are driving the deficit and the debt up and the president’s refusal to sit down and have a conversation about this is putting our nation.

STEPHANOPOULOS: He continues to refuse to negotiate, the country is going to default?

BOEHNER: That’s the path we’re on. The president canceled his trip to Asia. I assume — he wants to have a conversation. I decided to stay here in washington this weekend. He knows what my phone number is. All he has to do is call.

Since walking away from two so-called grand bargains in 2011 — which would have reduced the deficit by increasing revenue and lowering spending on certain entitlement programs — Boehner and other Congressional leaders met with Obama to discuss the standoff on Wednesday, though no deal was reached.

As Obama continues to insist that he will only negotiate with Republicans after they re-open the federal government by passing a clean continuing resolution and raise the debt ceiling, GOP lawmakers in battleground states are seeing their poll numbers drop and veteran Republican donors are becoming “increasingly alarmed by the defiant stance of hard-line conservatives.”

This material [the article above] was created by the Center for American Progress Action Fund. It was created for the Progress Report, the daily e-mail publication of the Center for American Progress Action Fund. Click here to subscribe.

Two Critics Of Government Spending Are Forcing The Army To Build Tanks It Doesn’t Want

By Annie-Rose Strasser on Apr 29, 2013 at 11:45 am

Credit: U.S. Army

Congress is forcing the Army to spend nearly half a billion dollars building tanks that Army officials insist they don’t want, with money they say could be better spent elsewhere, according to a new report from the AP.

Sen. Rob Portman (R-OH) and Rep. Jim Jordan (R-OH) are the two members of congress at the helm of the effort to spend $436 million on upgrading the Abrams tank, “a weapon the experts explicitly say is not needed.” The reason? Both represent Ohio, home to the nation’s only tank manufacturing plant, which would profit from the money.

The move is contradictory for the two politicians; both are also vocal advocates for fiscal austerity, and have made careers insisting that the government cut what they see as wasteful spending. It would seem that pushing for tank production against the will of the Army — as Army Chief of Staff Gen. Ray Odierno put it, “If we had our choice, we would use that money in a different way” — is in direct contradiction to that aim.

Still, Rep. Jordan defended his push for the funding, saying, “The one area where we are supposed to spend taxpayer money is in defense of the country.” This is a common line among Republicans. The House GOP’s proposed budget also seeks to restore funding the military says it doesn’t need.

Indeed, Republicans have pushed to maintain defense spending while pushing for cuts to mental health programs, cancer treatment, food safety inspectors, and preschool programs. They have repeatedly ignored or dismissed the assertion from military generals that President Obama’s budget, which would have made targeted cuts to military programs, was an acceptable path to spending reduction.

A cut to one specific program would by no means be a drastic setback for the military; between 2001 and 2011, military spending nearly doubled. American voters, much like the military’s generals, also support scaling back the military’s spending.

This material [the article above] was created by the Center for American Progress Action Fund. It was created for the Progress Report, the daily e-mail publication of the Center for American Progress Action Fund. Click here to subscribe.