The REAL causes of the deficit

With Republicans claiming to be deficit hawks and frugality champions, it seems to be time to take a look at this chart from the Center on Budget and Policy Priorities showing the true causes of the deficit.

Background: Remember, the Republicans oppose the extension of unemployment ($34 billion) because it's bad for the deficit. But they support an extension of the Bush tax cuts ($678 billion), even though they're worse for the deficit. they also support an extension of subsidies to the billion-dollar-profit-making oil industry, to the tune of $4 billion a year.

But the deficit is all Obama's fault because of the stimulus and TARP. Just ask any Republican, they'll tell you. Never mind that TARP was started under President Bush and TARP saved the whole blanking economy.

The lower black line is where the deficit would be today without the wars in Afghanistan and Iraq, the Bush-era tax cuts, TARP, and the Fannie and Freddie bailouts, the stimulus and the economic downturn.

Notice the culprits. In order, the Bush tax cuts are the biggest deficit problem we have. Second is the Bush economic downturn. Third are the on-going wars in Iraq and Afghanistan. TARP and stimulus - which have been credited with saving the economy - are far down the list.

But the GOP are concerned about the deficit. Right.

If we're truly going to talk defiict, let's look at the U.S. military budget. In 2009, military spending was $782 billion, 23% of our deficit-riddled budget. click the link and look at the projects we're funding. We're still building a Cold War military to fight 21st century battles. It's wasteful. And why? Because Congress's power is unchecked and connected politicians are able to strike deals saving outmoded bases and projects in their districts.

If we're serious about cutting the deficit, we have to look at military spending. Actually, first we have to get serious and stop any talk of the Bush tax cuts, which go to the wealthiest Americans who need it least. Cutting the funds that go directly to boost our moribund economy, unemployment and stimulus, is stupid, short-sighted and will have almost no impact on our deficit.

Chart: Hullabaloo via Cesca