When Bush took office, we had a debt of about $6 trillion. The projections from the CBO were that we were going to run a $6 trillion surplus. By this point, if we had done nothing, we would have paid off the debt, but we added about $3 trillion of tax cuts. We lost about $3 trillion of revenue because of the slower economy and added about $6 trillion of spending, largely due to two unfinished wars and a Medicare drug benefits and a lot of other things. So, instead of paying off the debt, we ended up with about a $14 trillion debt.
The dirty secret is that Obama is a moderate conservative. If I were a liberal democrat, I probably would be upset.
The Republicans keep saying the tax cuts are the key to prosperity. The 2000s are evidence that that is not true. We had booming economies in the 1980s and ’90s. If we went back to those taxes, we would be better off. I don’t see think any question we would have positive economic effects if we went back to the tax rates.
I think at this point, there’s nothing that can pass the House of Representatives. I think a good chunk of the Republican caucus is either stupid, crazy, ignorant or craven cowards, who are desperately afraid of the tea party people, and rightly so.
Reagan would be considered a liberal socialist by today’s GOP standards.