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Tuesday, November 30, 2010

GW Bush's TARP Cost $25 Billion

While there's many things about GW Bush that I disagreed with (namely I didn't think he was ever a true conservative), I think he's gotten a bum rap on spending. First, at the end of 2007, the federal deficit was only $160 billion. (1.1% of GDP). Throughout 2008, he did spend some money on stupid things like a one-off tax rebate to lower income Americans ($170 billion) and a $25 billion dollar loan to GM. But to top it off, he spent $700 billion on TARP. What most people don't realize is that TARP has been mostly paid off by now. Was it spending? I'd say it was more of an investment that people believed would be eventually paid off.

Anyway my point is that Bush spent - yes he did, but it's nowhere near what most people are saying. If you assume that TARP cost $25 Billion then, my best estimate is that Bush created a deficit of about $300 billion. Bad yes, but not as bad as most say, and nowhere near the trillion that Obama talks about. That trillion belongs to Obama. Let's not put them in the same league.