We also had the Bush tax cuts and trillions spent on war which only profited the ultra rich and drove the regular working Joe deeper in debt.
What's the solution John, more tax cuts for the rich?
I see your argument is faltering. I know this because you're going partisan. Blaming Bush won't work with me, because I also blame Bush for much of our current predicament. The Iraq war was a major blunder. It ultimately led to the total chaos we find in the Middle East today, cost us trillions of dollars, not to mention service folks dead, maimed etc. But don't forget Hillary and other Dems voted for the war and Obama completely fudged up the
Then there was Bush teaming up with Alan Greenspan to boost the sagging economy back in 2001 with significant Keynesian interest rates cuts, along with government backed lower home lending standards, which were also backed by Dems. Result. The housing boom, and then bust. Meanwhile, the national debt rose from $ 5 trillion to $ 10 trillion. This was a combination of unpaid tax cuts, war costs, and bank bailouts. Bush left the country a total mess and heading into a major recession.
Then Obama took over. Greenspan was gone, so Obama hooked up Bernanke. Recessions are
bad politics. Greenspan had busted the housing boom when he raised interest rates to cool things off. This absolutely killed the folks with adjustable rate mortgages, especially the sub-prime borrowers resulting in the bust. So what did Obama and Bernanke decide to do? Double down! Bernanke went with a zero prime interest rate for 8 years, and printed out of thin air another $ 3.7 trillion for good measure. Not to be outdone, Obama (and the Congress) tacked on another $ 10 trillion of government deficit spending. Without going into detail, this has created a huge stock market bubble, devastated savers returns, and the only folks really benefitting are Wall Street speculators. And yet Obama and the Dems decry an income inequality that they were complicit in creating!!!
Bottom line Tim. The Government/Fed geniuses teamed up to make things look good politically in the short term, while taking care of the elite, but at the same time they were fundamentally undermining the financial foundation of the country, and everyday folks.
So what is my answer Tim? Cut government spending big time, including defense (a couple hundred billion). Do not reduce taxes. SS and Medicare need to be cut by means testing. Rich folks benefits cut dramatically. Fair? No. They paid into these programs. But we have no choice. Dump federal departments like Education ($ 70 billion) etc. etc. Not downsize, eliminate. Review all Federal regulations. Many are counter productive. Get rid of them. Rein in the Fed, big time. Return to Gold backed dollars. No more printing. Set a goal to reduce spending a trillion dollars a year. So Tim, these are just a few things I would do to reverse our country's fiscal death spiral.
Now it's your turn.