This is what I don't understand about the deficit

[TheFarseer]

The last year GW Bush was in charge, we had a deficit of $400 Billion or so. Then with the stimulus and bank bail out, it ballooned to well over 1 Trillion. After that one time deal, you would assume it goes back to around $400 Billion. Why is it still well over 1 Trillion per year? What am I missing?

[PDJane]

1. Stimulus.

Wars (currently 3, possibly four if you count Pakistan). Ongoing tax breaks, amazing numbers of people out of work, including those who are discouraged. Once the economy hits a downward spiral, cutting taxes and spending is going to make it far worse, and the unemployed aren't paying taxes.

It's not going to get better without a lot of stimulative spending, and that ongoing, and tax hikes, particularly for those in the upper brackets.

The GOP have an upside-down view of the solutions.

[sharesunited]

2. I trace it to two things.

Reduced federal tax revenues due to slower economic activity and unemployment.

Continued enhanced assistance to the states which are feeling the same impact from the above.

[Auntie Bush]

3. Plus giving the rich and corperations tax cuts.

[sharesunited]

8. True, but the rates were kept the same as before the crash

so it can't be the key factor to explain why the deficit hasn't returned to "normal."

[W_HAMILTON]

4. Bush kept the war spending off the books...

...Obama put it back on the books.

[napi21]

5. BINGO! That's the real reason the declared debt is what it is today.

Shrubcheated by keeping it off the books and Obama put it on..the way it should be! Of course you'll never hear the Pubbies admit to that!

[TheFarseer]

6. ah, there you go

you might be onto something there.

[rufus dog]

7. That is almost a third of the deficit.

It is akin to having a household budget and ignoring your mortgage or rent payment.

[Festivito]

10. Yep, Bush budgets made war and bailout "EMERGENCY LEGISLATION."

So, his "budgets" were lacking hundreds of billions of dollars.

Furthermore, the deficit by debt subtraction has been coming down, DOWN, ever since, under Obama.

INCREASES IN DEBT:
FY2007 +0,500,679,473,047.25 Bush
FY2008 +1,017,071,524,649.92 Bush
FY2009 +1,885,104,106,599.30 Bush budget finished by Obama
FY2010 +1,651,794,027,380.00 Obama
FY2011 +1,338,938,788,513.72 Obama PROJECTION, linear by calendar days

Subtractions made from source:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

[tritsofme]

9. What are you missing? About 8 million jobs.

That is a lot of people not paying taxes and instead relying on the social safety net.