Paul Krugman debunks the myth that federal spending has vastly increased under Obama. He's done this about a dozen times before.
http://krugman.blogs.nytimes.com/2011/07/29/the-truth-about-federal-spending/
His argument is this, as a % of GDP, federal spending has indeed risen from 19.6% in 2007 to 23.8% in 2010. About 1/3 of that change is from reduced GDP. About half is a rise in safety net programs, because more people are in need or retired or past 65. The remaining 1/6 is stimulus programs [which were deeply inadequate] which have now ended, and they were mainly money sent to states to temporarily somewhat maintain spending, not increase spending.
I believe Krugman is correct. I am not aware of significant new federal programs, other then the temporary stimulus. But it would be nice to see a clearer argument, such as breaking down the actual spending by dollars. Here are some numbers provided by one commenter:
FY=Fiscal Year, FY 2008 began October 2007
These are nominal dollars (not adjusted for inflation):
FY 2008 (the last full FY under GWB): 3.0 trillion
FY 2009 (started under GWB): 3.5 trillion
FY 2010: 3.5 trillion
FY 2011: 3.8 trillion (budgeted)
The fairest comparison I can do with these data would be FY 2002-2003 for Bush, and 2010-2011 under Obama. (Sorry there aren't many years). In both cases, that starts with the first full fiscal year under each President.
2.2/2.0 = 1.1x increase for GWB
3.8/3.5 = 1.08x increase for Obama
The best comparison would start with 2001 and 2009, the previous fiscal years (largely set by previous president and congress). Unfortunately, I can't do that comparison with these data, since 2001 was not provided.
I can easily pick years which make Bush look like far bigger spending increaser than Obama.
Anyway, even looking at these raw numbers, it appears that Krugman is correct. There was a comparatively large jump from FY2008 to FY2009 of $0.5 trillion, but (1) that can't really be nailed on Obama, when he took office that FY was budgeted and 1/3 over, and (2) it includes the inadequate stimulus program, which should have been much bigger, as well as increased unemployment, social security, and medicare spending, which Obama had no control over.
http://krugman.blogs.nytimes.com/2011/07/29/the-truth-about-federal-spending/
His argument is this, as a % of GDP, federal spending has indeed risen from 19.6% in 2007 to 23.8% in 2010. About 1/3 of that change is from reduced GDP. About half is a rise in safety net programs, because more people are in need or retired or past 65. The remaining 1/6 is stimulus programs [which were deeply inadequate] which have now ended, and they were mainly money sent to states to temporarily somewhat maintain spending, not increase spending.
I believe Krugman is correct. I am not aware of significant new federal programs, other then the temporary stimulus. But it would be nice to see a clearer argument, such as breaking down the actual spending by dollars. Here are some numbers provided by one commenter:
2002: $2.0 trillion
2003: $2.2 trillion
2004: $2.3 trillion
2005: $2.5 trillion
2006: $2.7 trillion
2007: $2.7 trillion
2008: $3.0 trillion
2009: $3.5 trillion
2010: $3.5 trillion
2011: $3.8 trillion (budgeted)
2003: $2.2 trillion
2004: $2.3 trillion
2005: $2.5 trillion
2006: $2.7 trillion
2007: $2.7 trillion
2008: $3.0 trillion
2009: $3.5 trillion
2010: $3.5 trillion
2011: $3.8 trillion (budgeted)
FY=Fiscal Year, FY 2008 began October 2007
These are nominal dollars (not adjusted for inflation):
FY 2008 (the last full FY under GWB): 3.0 trillion
FY 2009 (started under GWB): 3.5 trillion
FY 2010: 3.5 trillion
FY 2011: 3.8 trillion (budgeted)
The fairest comparison I can do with these data would be FY 2002-2003 for Bush, and 2010-2011 under Obama. (Sorry there aren't many years). In both cases, that starts with the first full fiscal year under each President.
2.2/2.0 = 1.1x increase for GWB
3.8/3.5 = 1.08x increase for Obama
The best comparison would start with 2001 and 2009, the previous fiscal years (largely set by previous president and congress). Unfortunately, I can't do that comparison with these data, since 2001 was not provided.
I can easily pick years which make Bush look like far bigger spending increaser than Obama.
Anyway, even looking at these raw numbers, it appears that Krugman is correct. There was a comparatively large jump from FY2008 to FY2009 of $0.5 trillion, but (1) that can't really be nailed on Obama, when he took office that FY was budgeted and 1/3 over, and (2) it includes the inadequate stimulus program, which should have been much bigger, as well as increased unemployment, social security, and medicare spending, which Obama had no control over.
I have it all graphed out here.
ReplyDeletehttp://jazzbumpa.blogspot.com/2011/03/federal-budget-and-great-stagnation.html
Cheers!
JzB