The Rest Is Politics: US
The Rest Is Politics: US

How The War on Terror and Obama’s Bailout is Still Costing America

September 22, 2026

AI Summary

5 min read

How the War on Terror and Obama’s Bailout Is Still Costing America

In 2001, George W. Bush inherited a $236 billion federal budget surplus. By the time he left office, that surplus had turned into a trajectory of deficit spending that would reach $33 trillion over four presidencies. The mechanism that made this possible was simple: the Bush administration chose to fight a multi-trillion-dollar war while cutting taxes at the same time, asking no sacrifice from the American people. As Anthony Scaramucci recounts in this episode of The Rest Is Politics: US, that decision, followed by the 2008 Wall Street bailout under President Obama, transferred the bill to the poorest and most desperate Americans — the same voters Donald Trump would later claim as his own.

The Broken Promise of Fiscal Discipline

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What you'll learn

  • 1 (00:08) **Series Introduction & Framework** - Scarborough introduces the episode as part of the "All the Wrong Moves" series, tracing decisions that led to Trump.
  • 2 (01:52) **The Second Catastrophe: War Without Taxation** - The scene is set with Clinton leaving office in 2001, having created a $236 billion budget surplus.
  • 3 (05:52) **9/11 as the Shock That Broke Fiscal Discipline** - The 9/11 attacks created a context where Bush pursued both tax cuts and war without compromise.
  • 4 (11:12) **The Mechanism: War with a Tax Cut** - The core argument: America went to war not just without a tax increase, but with a tax cut, abandoning fiscal discipline.
  • 5 (13:13) **Why Bush Ignored Historical Lessons** - Scarborough explains the political and strategic miscalculations that led to the decision.
  • 6 (14:58) **The Scale of the Damage** - The financial consequences of the war decision are quantified.
  • 7 (16:34) **The Third Catastrophe: The Wall Street Bailout** - The episode pivots to the housing crisis and the Obama-era bailout.

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Show Notes

To hear the whole episode and the rest of the series, sign up at therestispoliticsus.com – if you live in the UK, you'll receive a free copy of Anthony's book, All The Wrong Moves.


How did Bush’s War on Terror coupled with his decision to not raise taxes put America on a deficit track it can’t get off? How did the system allow for bankers to get million pound bonuses while working Americans lost their homes, following the financial crisis? And how did all of this betrayal create the perfect storm for Trump’s populist agenda? 


Join Katty Kay and Anthony Scaramucci as they discuss all of this and more.


Instagram: ⁠⁠@RestPoliticsUS⁠⁠

Twitter: ⁠⁠@RestPoliticsUS⁠⁠

Enjoyed the series? Email us your thoughts: ⁠⁠[email protected]⁠⁠


Producer: India Dunkley

Senior Producer: Fiona Douglas

Video Editor: Kieron Leslie

Social Producer: Charlie Johnson 





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