Even that radical socialist "think tank" you posted says 52% of it was from tarp and the so-called stimulus.
The "radical socialist think tank" is merely showing published data. So, even if we allow that bush had nothing to do with TARP (ridiculous of course)...well, read it yourself.
Al
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Figure D shows the changing baseline estimate for the 2009 deficit over two years of forecasts, beginning in March
of 2007. Clearly, the weakening economy is the largest factor in driving the 2009 deficit . CBO describes the decrease in
estimated economic revenue as a result of a sharp fall in economic activity, lowered salaries and taxable incomes, fallen
corporate profits, and a general decrease in withholding and payroll taxes. Additionally, CBO’s projections show an
expected increase in spending on unemployment compensation and SNAP (food stamps).
Subsidies for Fannie Mae and Freddie Mac make up a large portion of estimated technical changes, increasing the
deficit projection by about $270 billion between January 2009 and March 2009. Outlays due to the large number of
failed banks, thrifts, and credit unions are also estimated to add to the deficit. According to CBO’s January 2009
economic outlook, lower projected technical revenues are mostly a result of the fall in the stock market with a decrease
in estimated capital gains by individuals and corporations, lower individual retirement account distributions, and a decrease in wealth subject to estate tax.
Other legislative changes to the 2009 deficit projection that do not include TARP and ARRA have a very limited
role in the increasing deficit since January 2009 and are also largely related to the deteriorating state of the economy.
CBO’s estimated spending from policies enacted since January 2009 include the Unemployment Compensation
Extension Act of 2008 and the reauthorization of Children’s Health Insurance Program (CHIP), with both of these
measures totaling only about $11 billion.
The Troubled Asset Relief Program (TARP) accounts for about $336 billion added to the current 2009 deficit estimate,
while ARRA accounts for about $181 billion. It is also important to note that TARP and the stimulus are designed as
short-term policies that will have the greatest impact in fiscal years 2009 to 2011, but will taper off after that.
In total, the bulk of these changes to the most recent 2009 projections are a result of the poor economic climate,
while policy measures such as TARP and ARRA make up a much smaller portion. |
