Contrary to popular assumption, stimulus spending under the American Recovery and Reinvestment Act [Obama] has been a very small factor in the expansion of the federal budget deficit in 2009.
Many policies that pre-date the Obama Administration, including Bush-era spending on the wars in Iran and Afghanistan, are key factors in the growing deficit.
“The Bush-era tax cuts are the largest contributors to this period of policy-induced increases to the federal budget deficit.”
The years between 2001 and 2007 saw a large deterioration in the budget balance, which was driven chiefly by legislated policy changes.
The Bush-era tax cuts are the largest contributors to this period of policy-induced increases to the federal budget deficit.