According to FoxNews.com the current recession ended in June of 2009. With the unemployment situation as it is, I imagine that few people believe it’s really over, even though that may be technically true. But I’d like to look at the other end of this recession. I’d like to look at when it started, because the President is always talking about the “failed policies that drove the economy into the ditch.” That quote may not be exact, rather more of an amalgam of what he’s said lately.
Notice, though, when the FoxNews.com article says the recession began: December of 2007. That was 13 months after the 2006 midterms, when as reported at American Chronicle, “Democrats will control the US House of Representatives (54% Democrat), the US Senate (49% Democrat + 2% Independents who will caucus with Democrats), 28 Governorships (56% Democrat) and 23 State Legislatures (where both houses will be controlled by a Democratic majority).” The Tavis Smiley show indicates that Mr. Obama was elected to the Senate in 2004 and that he announced in February of 2007 his candidacy for President.
Let’s look at this more closely. Based upon data from the Treasury Dept. (Note: You’ll need Excel to read that link), I charted the Federal Income, Expenses, and Deficits from Fiscal Year 2000 to 2010. The September 2010 figures weren’t available when I put the sheet together, so I took the average of the other eleven months for the Income and Expense figures, and their difference as the deficit figure.
A few things of note are interesting:
1. The Federal Deficit (Yellow line) increases significantly after the Democrats took power in 2006. (Remember, the FY begins in Sept. of the previous year)
2. The tax cuts of 2001 and 2003 had the overall effect of raising Federal income (Blue line) by $500 billion, even though expenses (Magenta line) climbed at a fairly steady rate from 2000 until 2007.
3. The Federal Deficit declined each year from 2004 to 2007.
4. As Federal deficits rose, Federal income declined.
I then decided to look at the unemployment rates during this time period and I found a page from the Bureau of Labor Statistics. I had to scale the Unemployment percentage up by a factor of 100,000 so it would show up on the chart in a meaningful way. So, when you see 1,000,000 it represents 10% unemployment.
Notice that from 2000 until 2007, the total unemployment rate began at 4%, peaked at 6% in 2003, and was in fact at 4.6% when Democrats took control of the House and Senate in 2007 and the Pelosi, Reid, and now Obama agenda began.
President Obama inherited a recession, alright; and while President Bush should have wielded the veto pen with more authority, it must be remembered that a President can’t spend money unless Congress authorizes it. In that respect, both of these branches of our Government are to blame for the recession. I just find it very disingenuous on President Obama’s part to blame President Bush for the recession when he himself was part of a Democrat-controlled Legislature that increased spending faster than the Republican-controlled Legislature had.
Talk about driving us into a ditch! No kidding! In fact, I’m with the President when he says, “Don’t give them back the keys” because I think this data speaks for itself: Democrats in power = huge deficits and increased unemployment.