I don't think recent annual deficits reflect any difference in philosophy from years before, they just appear to be a perfect storm of high expenditures and low revenues. That said, I think the deficit is one of the two biggest issues the country faces and have thought so for years.
Apparently the difference between the 2008 and 2009 budget deficits was $869M. According to the
CBO (2011) and in millions, between 2008 and 2009:
Income tax revenue went down.
1,145.7 to 915.3 (-230.4M)
Corporate Taxes went down.
304.3 to 138.2 (-166.1M)
Social Insurance Taxes went down.
900.2 to 890.9 (-9.3M)
Customs Duties went down.
27.2 to 22.5 (-5.1M)
In all, income went down by
$419M.
Now for mandatory spending:
Social Security spending went up.
612.1 to 677.7 (+65.6M)
Medicare spending went up.
456 to 499 (+43M)
Medicaid spending went up.
201.4 to 250.9 (+49.5M)
Income Security (SNAP, unemployment, foster care, etc.) went up.
260.7 to 350.3 (+89.6M)
"Other" Programs went up (the difference is TARP + Freddie Mac).
121.2 to 367.2 (+246M)
With other inputs for a total increase in mandatory spending of
$498M
So in total, revenue and mandatory programs accounted for an added $917M between 2008 and 2009, greater than the increase in the annual deficit of $869M. $917M is 3/4 of 2009 discretionary spending ($1,237.5M). Should it all have come out of that? Cut discretionary spending from one year to the next by 75% during a recession? I'm not saying we aren't spending too much now, but the real issue is that we have had many years of prosperity since Reagan took office, but the deficit has increased all through that time. We should have been paying off the debt and saving for the aforementioned rainy day.