The theme of the president's 2012 re-election campaign is that George W. Bush left such a terrible mess that Barack Obama could hardly be expected to clean it up in four years.
In other words, 43 months of unemployment rates above 8 percent, $5 trillion in new borrowing, $16 trillion in aggregate debt, gas prices of nearly $4 per gallon, a dive in average family income and involvement in two wars were all due to George Bush and simply too difficult for anyone else to overcome. So Obama cannot be judged on his record between 2009 and 2012.
Blaming or praising presidents for their four years of governance is an American tradition. That is why Obama asserted at the outset that if he could not turn around the economy, his presidency would be a “one-term proposition.”
Like all presidents, Obama inherited positive and negative legacies. True, there was a war in Iraq, but the surge — which candidate Obama opposed — had by mid-2008 mostly won the peace. That is why Gen. David Petraeus and Ambassador Ryan Crocker had already negotiated a timetable for American withdrawal. Obama followed that settlement; he no more ended the war alone than did he start it. For Obama to claim sole credit for ending the war in Iraq would be about as fair as blaming Obama for making things worse in Afghanistan.
Obama did inherit a terrible economy in January 2009, but one not quite still in full free fall from the mid-September 2008 panic — which abruptly gave Obama a 4-point lead over John McCain in the polls after being down four points.
By Inauguration Day 2009, the gyrating stock market had bottomed out, and the Dow Jones industrial average had not dipped below 8,000 in four months. The TARP rescue package had been enacted by Bush in October 2008, stopping runs on the banks and mostly restoring financial stability.
Blaming Bush for some of the mess is legitimate in politics, but the housing bubble and collapse — the catalysts for the September meltdown — were a bipartisan caper of pushing Freddie Mac and Fannie Mae to underwrite risky subprime loans to the unqualified who had no business buying homes at inflated prices. Washington insiders ranging from Clintonite Rahm Emanuel (Obama's former chief of staff) and Franklin Raines (a Clinton administration grandee) to Tom Donilon (the current national security adviser), James Johnson (an Obama campaign bundler) and Jamie Gorelick (deputy attorney general in the Clinton administration) got in on the Freddie/Fannie profit-making despite thin banking resumes. Even with the last four months of crisis, Bush still averaged a 5.3 unemployment rate for his eight years in office.