Remembering 2006 - When $296 billion was a lot of money

Later today as President Obama submits a budget that will show a 4th consecutive year of $1 trillion plus deficts, it's helpful to put that into perspective.  Here is how ThinkProgress described President GW Bush's 2006 budget with a projected deficit of $296 billion:

Today, the Office of Management Budget projected a $296 billion federal deficit for fiscal year 2006. Bush held a press conference arguing that this is a vindication of his economic policies.
Actually, it would be the fourth largest deficit of all time. Here’s the top five:

1. 2004 (George W. Bush) $413 billion
2. 2003 (George W. Bush) $378 billion
3. 2005 (George W. Bush) $318 billion
4. 2006 (George W. Bush) $296 billion (projected)
5. 1992 (George H. W. Bush) $290 billion

In other words, Bush's 2006 budget (the last with a Republican majority) was not only on a downward trend over several years, but was similar to a budget deficit from 14 years prior. 

I will not be the first to defend Bush from the charge of being a big spender.  But despite the terrorists attacks and already burgeoning recession in 2001, policies were in place to bring spending under some modicum of control.  The following years of the Bush Presidency saw a democratic Congress, so the outlying years naturally told a different story even though it topped out at just under $500 billion.

What Obama proposes today will not be the actual budget that passes Congress.  Thankfully we now have a Republican Congress and a real hope of bringing the annual budget back under the $1 trillion mark.  But wouldn't it be nice if we could all be complaining about a record Obama deficit that was at least similar to any. other. President. we've. ever. had.  

Perhaps with a leader who actually cares about such things, we might even have a democrat-controlled Senate that would actually pass a budget - something that hasn't happened in three years.  Perhaps if the President could simply understand that free doesn't really mean free, we wouldn't have so many new "free" programs and mandates.  Perhaps if the President understood that the axiom "you have to spend money to make money" only works in the private sector.  Perhaps if the President wasn't too busy transforming America into something unrecognizable, he might notice we are in a perilous position.  Perhaps if the President cared about America as he does about himself.....well, nevermind.


UPDATE:  The budget has been released.  For an early analysis check out Veronique du Rugy's post on NRO's The Corner.

Budget Nonsense & Hyperbole

As of 9:35 AM CST today, we still have no budget deal and are heading toward a government shutdown tomorrow night.  In an effort to head off a shutdown, the Republican house has proposed another Continuing Resolution similar to what has been done to keep the government funded up to this point.  This stop-gap bill also includes a measure that will fully fund the military for the rest of the year.  This would prevent any potential shutdown from affecting our soldier's pay or harming our military actions around the world.

For Senate majority leader, Harry Reid  (D-NV), every moment not spent sleeping or in negotiations is being used to make the most strangely ironic claims.  In a speech on the Senate floor yesterday, Reid said,

Now we learn that House Republicans are going to make another excuse, create another diversion, and avoid another tough choice. Instead of solving the crisis the way we should, instead of saying yes, they say in fact what they are going to do is pass what they will call another short-term stop-gap measure. They will say it is short term, but what that really means is it’s a shortcut, a short cut around doing our jobs. Instead of solving problems, they are stalling; they are procrastinating. That’s not just bad policy, it’s a fantasy. We all heard the president of the United States say yesterday that he won’t accept anything short of a full solution, and why should he? We’re six months into the fiscal year now.

Perhaps it should be brought to Sen. Reid's attention that his party controlled the House, Senate & Presidency last year when they chose to avoid solving problems, they stalled and they procrastinated. 

Finally..."The Path to Prosperity"

Paul Ryan has released his 2012 budget proposal:  The Path to Prosperity.  It is perhaps, the boldest budget plan ever offered.  As the editors at National Review put it,

Paul Ryan’s budget proposal for next year is the most ambitious conservative initiative since — well, actually, since ever.

Our current budget deficit will be $1.6 trillion this year.  The total national deficit is $14 trillion.  A few months back, President Obama proposed a budget that will never break even over a ten year period and will ultimately end with spending levels at 40% of GDP.

Ryan's budget proposal will cut spending $6.2 trillion compared to Obama's budget.  It will cut spending back to the historical average of 20% of GDP.  His plan will completely pay off the national debt by 2050.  And he will do this without raising taxes.

I wish this graph was lying about our current path.  I wish that everyone understood how perilous our future is.  But wishing doesn't make it so.  Our current path is not just unsustainable, but implies a total disaster awaits us.