Where did the deficit come from?

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.

http://www.nytimes.com/interactive/2009/06/09/business/economy/20090610-leonhardt-graphic.html

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.

Source: http://www.nytimes.com/2009/06/10/business/economy/10leonhardt.html?_r=1

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2 responses to “Where did the deficit come from?

  1. Can you parse how much came from the Bush part of the Iraq war, vs. the Obama part – especially since Bush did not put his wars on the books?

  2. The NYTimes website doesn’t give enough detail to be able to specifically identify how much of the deficit comes from the Bush-Iraq vs. the Obama-Iraq costs. It does specify, though, that $673B came from a combination of the Bush tax cuts and Bush-Iraq war, while $232B has come from a combination of the Obama-Iraq war and a few other continuing policies from the Bush administration.

    This graph is also helpful:
    http://www.offthechartsblog.org/whose-deficit-is-it-anyway/

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