Simple Math

Posted by: Barthélemy Barbancourt

Tagged in: Untagged 

Obama's 2012 Budget - $3.729 trillion,

Estimated Deficit $1.6 Trillion

Debt as percentage of GDP: 105.32%

 

Bush's 2009 Budget - $3.107 trillion

Estimated Deficit - $406 billion

Debt as percentage of GDP: 84.11%

 

Bush's 2007 Budget - Total revenue $2.57 trillion

Actual Deficit - $161 billion

Debt as percentage of GDP:63.65%

GW Bush's last budget before the Pelosi-Reid disaster had a total deficit that is smaller than the deficit Obama runs on any given month.

The debt ceiling is an issue for 2 reasons;

1. The American public is sick of free spending politicians on both sides of the aisle. Our elections swing back and forth almost every cycle as voters search, mostly in vain, for a party that will stop spending all of our money. The new Republican House members know this and are using the debt ceiling as a tool to try and get something done.

2. Our economy is in poor shape. We don't have a clear path to how we can grow our way our of this debt. Increasing the debt ceiling in a strong economy is much easier to justify as the debt as a proportion of GDP should be stable or even shrinking as the actual amount of debt increases. Currently our debt as a percentage of GDP is increasing; this is why this increase is such a big issue.

Note that Debt as a percentage of GDP has increased by 25% under Obama and by 65% since the Pelosi-Reid Congress.  Bush increased the debt from 56.56% to 63.65%, a little over 1% a year over 6 years. Obama has gone from 84.11% to 105.32%, better than 7% a year for 3 years. If Bush was bad for the debt, Obama is 7 times worse!

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TomC
...
written by TomC , July 26, 2011

It drives me crazy that regardless of plan there is talk of $1-9T in cuts over 10 years. Over 10 years, that is $1-9T of a $16T deficit--so nothing to cheer about. This whole controversy is crazy. They ought to be planning to cut to a balanced scenario over 4 years, cutting an accumulated $400B per year over 8 years. Over 4 years we would be at today's debt + $4T, over 8 years we could be at $11T debt.



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