Quote Originally Posted by PeteEU View Post

However, being in the recession we are in, in the world, cutting spending is the last thing you should do. In fact you should increase it temporary till the private sector spending picks up again and can take over the "engine" and the cut spending to balance the budget (preferably a surplus so you can save/pay off old debt).

Now that aint saying what Obama is doing is right or wrong though. The usual partisan hacks seem to be rambling on about "oh it is so bad all this spending" but as usual come with zero realistic alternatives.

The fact is the US had a massive deficit during the "good years" where there should be no deficit but in fact a surplus. If you look at other countries with great economic expansion during the 1990s and onwards, all of them had pretty much budget surpluses.. the only ones that did not.. the US and UK.

If anything, Bush spent far more as a drunken sailor than Obama (for now). Why? because he took over a surplus and despite the 9/11 mini recession, he had many years of great economic expansion (granted it was in many ways fake but still), where there should have been a surplus to pay off the deficits of the past. But instead what did Bush do? He increased spending dramatically across the board, without cutting anywhere and on top of that he cut taxes and went into 2 wars... Sure the tax revenue increased for a while, but it is like pissing in your pants.. you have a nice warm feeling for a while, and then it gets real cold.

Then Obama comes along, being forced into a situation that calls for drastic things. Should he cut spending.. no, that goes against every principle of getting out of a recession. The right tried that in 1929 and look where that got us.

Should he increase spending?.. yes to compensate as much as possible for the fall in private consumption, but by how much and how to pay for it.. he has zero nest egg to take off thanks to Bush, and thanks to Bush the deficit is already at record levels so there is very little leeway for him to do anything but loan more and more money to pay for any increase in spending that is needed.
What did I -just- say?

What the pathetic hacks argue is that "Bush screwed things up so bad that [the Obama} should have carte blanch to do whatever we think [He] need[s] to do".