Do conservatives understand that roughly 75 pct. of the Obama deficit was incurred under Bush?
It seems like very few conservatives understand the difference between cash accounting and accrual accounting.
Under the accrual method, revenues and expenses can be recorded when the funds are allocated or budgeted. In other words you don't have to wait until you actually pay money to record a transaction. If Bush had used an accrual accounting method America would have incurred the cost of Iraq, Afghanistan, and Medicare Part D during the Bush Administration. But that's not what happened. Instead, Bush used the magic of cash accounting.
Under the cash method, income is not counted until cash (or a check) is actually received, and expenses are not counted until they are actually paid. Thus, Bush was able to wage two unfunded foreign wars and pass the largest-ever unfunded expansion of socialized medicine without actually "spending" a dime.
Instead, these costs hit the books when they were actually paid under the Obama Administration. This is why the debt under Obama spiked in 2009... because Obama included Bush's expenses in the annual deficit.
Put simply - Bush ran up America's credit card and stuck Obama with the bill. Then as soon as Obama started making payments, conservatives complained about the original purchases and asked for Bush back.
By the way, this is not my opinion. Former Fed Chairman Alan Greenspan is on record saying this.
- FoofaLv 71 year agoFavorite Answer
No one seems to understand how accrued debt spans administrations. Carter labored under the expense of Vietnam and most economists believe that's why he's been tarred and feathered as the worst President of the 20th Century (even above Nixon in many general polls).
- 1 year ago
- Godless GazooLv 71 year ago
Bush spend too much the last year too.....but over half the debit is Obama's.
You are trying to compare Bush's worst year to Obama's best and getting that Bush was 75%. That's probably accurate, but not the point.
- 1 year ago
"It seems like very few conservatives understand the difference between cash accounting and accrual accounting."
This is the most laughable statement I've ever seen on this site. Do you know who understands the difference between cash accounting and accrual accounting? Roughly 0.5% of the population.
What's next? Liberals don't understand capital restructuring?
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- KaleyKLv 71 year ago
Do you understand that every President is responsible for what happens on his watch? Clinton didn't invent the internet, but it came to fruition during his Presidency; Clinton gets credit for the economic boom associated with the internet. 911 happened when Bush was in office, that's on his ledger. And whatever deficit occurred on Obama's watch belongs to him and no one else.