This helpful graphic from the NYTimes shows how we went from 800 billion dollar surpluses turned into trillion dollar deficits in less than ten years.
The bottom line:
- 37% of the deficit is a result of the economic downturn and global financial crisis.
- 33% of the deficit is a result of the Bush tax cuts and Medicare plan.
- 20% of the deficit is a result of President Obama continuing the Iraq war, extending the Bush tax cuts on the middle class, and the “bail-out” TARP plan.
- 7% of the deficit comes from Obama’s economic stimulus plan.
- 3% of the deficit comes from Obama’s policies on health care, education, energy, and others.