The Great Recession Factor?
Let me start by saying that your second point is largely valid (unfortunately) and represents the single most important failing of our system right now.
Having said that, I can't buy the Great Recession as a factor in the deficits. According to the Tax Policy Center, income tax revenues were higher in 2009 than they were in 2001-2005 (as an example period). The difference is the deficit number as a percentage of GDP was -10.1 in 2009.
The fact is, no matter how much revenue is received, the government insists on spending more than we have. Lately, they have spent a LOT more than we have....
If the purse strings tighten, so must the spending.
