Free Markets, Free People

Debunking the Obama economic litany in one chart

Ye olde “a picture is worth 1,000 words”:

IBD has the article.  One of my favorite myths is the Bush “tax cuts” (tax rate) and deregulation cause the recession.  Yeah, not so much:

It’s a standard Obama talking point. But it’s not true. Bush’s tax cuts did not cause the last recession.

In fact, once they were fully in effect in 2003, they sparked stronger growth — generating more than 8 million new jobs over the next four years, and GDP growth averaging close to 3%.

Those tax cuts didn’t explode the deficit, either, as Obama frequently claims. Deficits steadily declined after 2003, until the recession hit.

Nor was Bush a deregulator. Conservative Heritage Foundation’s regulation expert James Gattuso concluded, after reviewing Bush’s record, that “regulation grew substantially during the Bush years.”

Even the Washington Post’s fact-checker, Glenn Kessler, gave Obama’s claim three out of four “Pinocchios,” saying “it is time for the Obama campaign to retire this talking point, no matter how much it seems to resonate with voters.”

What did cause it?  What we’ve been saying since it happened, that’s what:

The housing bubble. And that, in turn, was the result of a determined federal effort to boost homeownership by, among other things, pressuring banks to lower lending standards.

So while the rest of the surrogate media “fact checks” Romney, here’s a basic fact check on Obama. And yes, if you’re still wondering … he’s full of it.

Twitter: @McQandO
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11 Responses to Debunking the Obama economic litany in one chart

  • Collectivist action plan:
    1. screw stuff up
    2. lie about the causes
    3. repeat as needed.

  • But Romney tied his dog to the roof of his car!

  • The image has a poor resolution.

  • The housing bubble was caused by Clinton’s polices, so I blame Tad, Capt Snarc and Erp, since they are Clinton fluffers (or would like to be).

    • Remember, too, that a certain Paul Krugman (of Enron fame) called for the intentional inflation of a housing bubble via cheap money.

  • “… the same tax cuts and deregulation agenda that helped get us into this mess in the first place.”

    I don’t think he meant that tax cuts caused the recession, rather that they caused the large deficit we now have.

    • Whatever he meant, it is BS.  The problem has NEVER been too little revenue.  It is to MUCH spending.

      • If you don’t have the will to balance the budget at the current revenue, you won’t have the will to balance it at a higher revenue. 

      • True, but accuracy and consistency are important. If we criticize one side for exaggeration or misinterpretation, it is important to hold the other side to that standard also.

    • To be fully accurate, you also need to include the fact that tax revenues went UP to record levels after the Bush tax cuts. Tax cuts actually reduced the deficit.