I don’t know how many times Obama has spouted off about “inheriting” this and all that. He makes me tired just listening to the rhetoric so I decided to remind everyone about a few things.
(Well, that and my cousin Daniel decided to jump in the pool with some rhetoric without facts.)
Ok – so let’s first remind ourselves of what branch of government controls the money? Easy – Congress does.
Wait a minute! You thought the president controlled the money? Wrong. The president (and staff) submit a budget to Congress, but no money can be spent without Congressional approval. Here is how it basically works or you can read here for more:
- President submits the budget request each year to Congress.
- The House and Senate committees draft resolutions and send them to the respective floors.
- Once a resolution is reached after conferences, etc, a conference report reconciles the Senate and House versions to become binding.
Now that we’ve established that Congress really controls the purse strings, how does that factor into what Obama inherited? To answer that, we now need to review the timelines.
First a little disclaimer. I am not siding 100% with Republicans. Most of them have been nearly as fiscally irresponsible as the Democrats. The problem here is pretty clear.
There is a HUGE gap between those that believe government is the answer and those that believe too much is the problem. — me on Facebook
Ok – so what about the timelines and Obama’s claimed inheritance? Just a few years ago, 2006 to be exact, the Democrats took control of the House and Senate. That means that since then, they have controlled the purse strings.
Wait just a second? You mean that Bush and the Republicans weren’t responsible for the 2007 economic fallout? For the most part – no they weren’t. However, Bush and many Republicans did push for the first bail-out. That was a huge mistake, and was the final nail in Bush’s fiscal coffin with a lot of conservatives.
Yeah – but the economy was failing before 2007? Well, yes and no. We were steaming along pretty good, but the ice berg was just under the surface. You see, back in 1998 there was this thing called the Gramm-Leach-Bliley Act which I posted about back in 2008. Like I said back then, it was a combination of lax oversight by Congress, and the natural greed which precipitated everything.
It doesn’t take a genius to figure out that loaning money to people who are nowhere near qualified – is a recipe for disaster. Like most recipes, simmering for a while turns out the best. That’s exactly what happened in the Subprime Mortgage fiasco in 2007. The rest of the pot just boiled right on over.
Yeah, yeah – so what about the time-line? Ok, back to the refresher on Congress controlling the purse strings. Remember that “budget surplus” that everyone touts from the late 90′s under Clinton, which was really a projected surplus? Remember those great economic times everyone loves to talk about? What party controlled both houses of Congress starting from1994-1999? It was the Republicans – from 1994 until 2007.
Ok – so what about the Reagan Revolution? Well, the Senate was controlled by Republicans from 1981-1985, and then the Democrats took over both houses. Just a few short years later, we experienced a mild recession during George H. W. Bush’s term. Do you see the pattern here?
Thank you very much you liberal morons.
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