Republicans Proven Wrong As Under Obama The Deficit Falls Below the 40 Year Average

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After years of screaming about Obama’s deficits, how will anyone break the news to Republicans that today, the Treasury Department and Office of Management and Budget announced that the 2014 deficit as a percentage of GDP has reached its smallest point since 2007 at $483 billion, which also happens to be below the average deficit of the last 40 years.

Also, while we’re on it, wanna know how we got here? Bloomberg says revenue. Oh, holy Republican grail, is there no end to the perfidy? Read on:

The budget deficit in the U.S. shrank to the lowest level as a share of the economy since 2007 in fiscal 2014 as faster growth and falling unemployment boosted tax receipts, the Treasury Department said.

The shortfall was $483.4 billion in the 12 months to Sept. 30, compared with $680.2 billion a year earlier, the Treasury said today in Washington. That’s about a third of the record $1.4 trillion deficit reached in 2009. Revenue jumped 8.9 percent and spending gained 1.4 percent, the figures showed.

Bloomberg goes on to warn that this is only good news for the short term — big troubles await because an aging population will cause Social Security and healthcare costs to rise, and the Deficit Will Kill Us All Then.

It was Ronald Reagan who explained that Social Security had nothing to do with the deficit.

Reagan said, “Social Security, let’s lay it to rest once and for all… Social security has nothing to do with the deficit. Social Security is totally funded by the payroll tax levied on employer and employee. If you reduce the outgo of Social Security, that money would not go into the general fund or reduce the deficit. It would go into the Social Security Trust Fund. So Social Security has nothing to do with balancing a budget or raising or lowering the deficit.”

No mention was made of the fact that we are subsidizing big oil and huge corporations are fleeing the country in order to avoid paying taxes here. Taxes being r.e.v.e.n.u.e.

Fear mongering about the future aside, no one can deny this is good news. And it kicks sand in the Republican meme about President Obama’s big spending liberal ways.

In September, Forbes announced that the deficit has disappeared:

The U.S. Treasury announced last Thursday that the federal deficit was $128.7 billion in August. That’s 13 percent lower than it was during the same month last year.

Washington typically records a budget surplus in September and $80 billion or so in black ink is in fact projected for next month. If that occurs as expected, the deficit for all of 2014 will be about $500 billion. That will be more than 26 percent below 2013 and the smallest federal deficit by far since 2008.

So, we came in under the prediction for September, but as Forbes discussed last month, no one is talking about this. The budget deficit scolds have gone silent. The Tea Party is silent. The Republican Party is silent — other than to keep on using “deficit” as a weapon of mass talking points destruction in debates around the country, facts be damned.

Democratic Leader Nancy Pelosi was pleased, “Six years ago, our nation was confronted with the greatest economic disaster since the Great Depression. In those dark days, Democrats stepped up and put our economy back on track. Since President Obama took office, our nation has made immense progress. Today, our businesses are in the longest uninterrupted streak of job creation in our history, the unemployment rate is at a six-year low, and the deficit as a percentage of GDP has been cut to the lowest level since 2007.”

Pelosi addressed those rising healthcare fears, “Democrats have consistently worked to reduce the deficit in a responsible and balanced way. The Affordable Care Act continues to drive down the growth of health costs, securing a stronger future for our seniors, our families and our budget. Republicans, however, have consistently chosen a radical and irresponsible path: advancing budgets that gut the investments in America that are essential to job creation and growth, betraying students, seniors and middle class families while refusing to close even one special-interest tax loophole. With many middle class families still struggling, Republicans even voted to raise taxes on the middle class while slashing them for millionaires.”

Republicans always leave revenue out of the discussion even as they fear monger about how we just can’t afford to feed starving children or take care of our elders, because the deficit! But there is always money to give corporations a free ride on the taxpayers’ backs.

Pelosi charged, “Time and again, Republicans have blocked action to lift the draconian sequester cuts that are weakening our global competitiveness and harming communities across the country. The American people have had enough of Republicans trying to balance the budget on the backs of seniors and middle class families. They have had enough of the Republican recklessness that shut down the government for 16 days, costing our economy $24 billion and 120,000 jobs. It is time to jumpstart the middle class, invest in our future and build an economy that works for everyone – not just the privileged few.”

The Republican deficit argument is dead in the water. Of course, that won’t stop them from using it or their base from believing in it. But here in reality land, things are slowly getting better. Just imagine what a little help from Congress would do. Are you picturing that? Now picture a ballot box.

23 Replies to “Republicans Proven Wrong As Under Obama The Deficit Falls Below the 40 Year Average”

  1. Great news now maybe the austerity chicken little’s will have a case of STFU but I doubt it.

    BTW when will we see a headline that republicans were right about anything

  2. The Republicans will ignore this news and you won’t hear FOX report on it. Why? Because it is GOOD NEWS. Only BAD NEWS is GOOD NEWS for any Republican. Haven’t you noticed by now that’s how they get their jollies? Gleefully expounding bad news and pointing fingers at Obama (his fault) and blaming his administration and everyone in it. When, WHEN have you heard them applaud anything positive? But they are quick to spread FEAR and GLOOM + DOOM. Just look and read their comments about EBOLA. Claiming, among other ridiculous theories, that it’s Obama’s fault it got here, of course. Geeze we’ve got to start ignoring these Republicans and voting them out of power so that we don’t have to listen to or hear their very annoying complaints and BS. But knowing them, they will not stop although the toxicity levels of their Party is at high levels.

  3. I agree democrats are the most well intentioned party, but their economics leave something to be desired. But nobody’s perfect.

  4. I just do not get the US people, I read a poll that says people prefer republicans to be in control of congress –
    What are they using – republicans have done nothing since Obama was elected other than obstruct and take off 2 months at a time and work a few days before the next vacation, not to mention the cost of shutting down the government and all the witch hunts, I hate to use the term ‘idiots’ but anyone who wants the repubs in control is an idiot!

  5. The only thing that republicans have done was to run up the nations credit card and made the rich richer.
    Republicans represent both sides: the insanely rich and vice versa.

  6. 55 Straight Months Of Private Sector Job Growth
    Under President Obama’s leadership, the economy has added private sector jobs for 55 straight months. During this span, 10.3 million private sector jobs have been created. – See more at: http://www.dpcc.senate.gov/?p=blog&id=172#sthash.NedEAmRl.dpuf

    Economically, Could Obama Be America’s Best President?
    http://www.forbes.com/sites/adamhartung/2013/05/16/economically-could-obama-be-americas-best-president/

    Today the Congressional Budget Office is reporting a $200B decrease in the deficit almost entirely due to increased revenue from a growing economy and higher taxes on the wealthiest Americans. The deficit is now only 4% of the GDP, down from over 10% at the end of Bush’s administration – and projections are for it to be only 2% by 2015 (before Obama leaves office.) America’s “debt problem” seems largely solved, and almost all due to growth rather than austerity.

    You’re right. Bad Obama

  7. the democrats need to start shouting about the accomishments this country has had inder this president. I am sick and tired of the gop always setting the tone and the left playing defense all the time. just monday night mcconnell lied and stated the deficit was rising, nobody challenged him on that and. other lies, but the msm, including supposedly

  8. Be careful of pollsters. Many are right leaning and will ask more republicans those questions than those who would vote for democrats.
    Pollsters can also be more left leaning as well, but always consider the source.

  9. No mention of the $7,000,000,000,000.00 increase to our national debt under the Obama administration.

    This crap about the deficit just means the US will overrun the budget by only $483,000,000,000.00 this year compared to $680,000,000,000.00 last year.

    Try running your household without a balanced budget. It just doesn’t work and SOON the US will find out the pain it will cause.

    Keep writing these “feel good” articles so the population lets their guard down.

  10. ” and SOON the US will find out the pain it will cause.”

    So I take it you think we just now ran without a balanced budget? You cant be happy with it going down, it must be killing you

    BTW, do you think the national debt and the deficit are the same thing? I bet you do you little rascal

  11. DOW @ 8,200 when O was inaugurated, on it’s way to 6,700. Now, record highs. Deficit was over 9% of GDP, now it’s 2.4. Gov’t spending at it’s lowest levels in 60 years. Unemployment now @ 5%, down from 9% or more. Want More? I’m afraid of shoving too much up your arse, might give you a black eye or something. You really should pull your head outta there.

  12. Most peolpe know what they are talking about. Stick to a subject that you know, please. Your are only confussing yourself.

  13. And we are celebrating the fact that this president is just a half a trillion over the debt of every president combined before him?

    You go kids! Knock out that college debt where they taught you economics!

    Kindest Regards

  14. Only imbeciles would blame those trillions in Federal debt to this president.

    Most people with at least half of a working brain knows, that President G.W. Bush and twelve years of a Republican Congress are the reason why those trillions in Federal debt became a reality.

    President Clinton’s and a Democratic controlled Congress’ policies created hundreds of dollars in budget surpluses. In fact, from 1998 to 2001, the federal government ran total annual budget surpluses of between $69.2 billion and $236.2 billion, according to the nonpartisan Congressional Budget Office (CBO).

    Conclusion? If you want to live like a Republican:

  15. The difference between left-leaning pollsters and right-leaning pollsters is that left-leaning pollsters are the most accurate. That should tell people something right there.

    Left-leaning pollsters see no advantage in lying and skewing polls in order to benefit Democrats. They lose credibility – something that right-leaning pollsters have done long ago, but what was made so apparent during the 2012 presidential elections.

  16. John, you really need to understand your own government.

    In order to lay blame for the deficits of this nation on the real culprit, you need to understand how our Gov’t works.

    Of the three branches that make up the U.S. Gov’t, which one is tasked with the nation’s purse strings again?

    Take a few months. It’ll eventually come to you.

  17. You forgot to mention that the 9% increase in revenue isn’t from unemployment going down, but the payroll tax cut and business tax cut expiring.

  18. When the dialogue concerns Social Security and Medicare from the Repulshricans rhey forget the thousands of jobs lost by outsourcing. Reductions in the work force to increase corporate profits and bolster CEOs golden parachutes. That’s the way the 1% keeps getting richer, while destroying the AMERICAN dream, turning it into a nightmare.

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