During the course of the Bush administration, Republicans found their mojo for Big Government Republicanism. For example, in 2003, President George W. Bush announced that his administration would spend “up to $400 billion” over 10 years to add prescription-drug coverage to Medicare. By 2008 that Medicare drug entitlement program was projected to cost $783 billion over the next 10 years.
And then there was the $700 billion Troubled Asset Relief Program (TARP), from which funds were used to bail out the banks and General Motors. As Rep. Tom Price (R-Ga.) noted at the time, “It is now clear that the creation of TARP was a rueful mistake which has failed to provide urgent market stability, yet has put our country perilously in debt for the foreseeable future.” Overall, under Republican leadership, federal spending surged 47 percent between 2001 and 2008, with spending increasing 9.1 percent (or $249 billion) in 2008 alone, while the federal debt rose by $3.8 trillion during that same period.
But wait, there’s more. Not to be outdone, President Barack Obama kicked off his term with an $823 billion “stimulus” from which we are still expecting jobs to be created. Under a Democrat-controlled White House, House and Senate, we witnessed the number of employed persons (you remember them) decline from 145.3 million (the month before Obama took office) to fewer than 140 million in 2010. And while the economy saw an increase in the unemployment rate, it also saw an increase in the rate of spending. Federal spending in 2009 grew 18 percent or $535 billion. In one year.
As the Congressional Budget Office predicted, since 2009 federal spending has averaged 24.4 percent of GDP — meaning, as the Wall Street Journal has pointed out, that one dollar of every four you produce from your labor is taxed and redistributed by the federal government. But in order to spend, the president has had to borrow money. Lots of it — $3.7 trillion, in fact, since 2009. On Inauguration Day, the nation’s debt stood at $10.6 trillion. In a few short weeks, Congress will likely take steps to increase the current $14.3 trillion debt ceiling so that the government can spend more.
And what about the Department of Defense? Well, let’s put it this way: In fiscal year 2001 the government spent $366 billion on defense and is expected to spend $964 billion in 2011.
But in all of this, what has struck me as the most dishonest is the wailing and gnashing of teeth by establishment types on both sides of the aisle about spending, taxes and debt, all the while doing very little to address the nation’s fiscal health or the growing number of unemployed. Remember: (1) Until January 2011, the Democrats controlled both the legislative and executive branches of government, and during that time, they failed to even pass a budget for fiscal year 2011; and (2) Republicans campaigned in 2010 on cutting $100 billion in federal spending from the 2011 budget; dropped that number to $61 billion when they took control of the House of Representatives; and finally settled with the president and the Democrats (who offered no cuts that weren’t offset by higher spending) on $39 billion in additional cuts, thereby passing a 2011 budget and averting a government shutdown — some seven months into the fiscal year. Clearly this is no way to manage the nation’s business.