Economist Nouriel Roubini says 5 factors helped turn the nation's economic surplus into a deficit during Bush's presidency.
One well-known economist says that former President George W. Bush is to blame for the current economic crisis.
Nouriel Roubini, a New York University professor nicknamed "Dr. Doom" for his dour views on the economy, says in this video that when President Obama came to power, he inherited a budget deficit of $1.2 trillion. When Bush came to power, the country had a surplus of $300 billion.
How did we get a $1.5 trillion change in our fiscal condition during Bush's time in office? Roubini lists five factors:
1. We cut taxes.
2. We spent $2 trillion on two unwinnable wars.
3. We doubled discretionary spending. Some conservatives originally aimed to "starve the beast" by cutting taxes in order to force future cuts in spending. But spending grew so out of control in Bush's term that no beast was starved, Roubini said. In fact, the beast was fed.
4. We added entitlement benefits like the Medicare drug benefit.
5. We entered the largest economic and financial crisis ever, which caused a huge increase in the deficit through the "recession deficit" and the cost of bailing out the banks and financial institutions.
One well-known economist says that former President George W. Bush is to blame for the current economic crisis.
Nouriel Roubini, a New York University professor nicknamed "Dr. Doom" for his dour views on the economy, says in this video that when President Obama came to power, he inherited a budget deficit of $1.2 trillion. When Bush came to power, the country had a surplus of $300 billion.
How did we get a $1.5 trillion change in our fiscal condition during Bush's time in office? Roubini lists five factors:
1. We cut taxes.
2. We spent $2 trillion on two unwinnable wars.
3. We doubled discretionary spending. Some conservatives originally aimed to "starve the beast" by cutting taxes in order to force future cuts in spending. But spending grew so out of control in Bush's term that no beast was starved, Roubini said. In fact, the beast was fed.
4. We added entitlement benefits like the Medicare drug benefit.
5. We entered the largest economic and financial crisis ever, which caused a huge increase in the deficit through the "recession deficit" and the cost of bailing out the banks and financial institutions.
