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D Gary Grady

(133 posts)
14. A few things to remember about the public debt
Mon Oct 19, 2015, 06:19 PM
Oct 2015

At the end of Bill Clinton's presidency we were paying down the national debt so fast that the Congressional Budget Office estimated the entire public debt would be paid off in as little as 10 years, for the first time in American history. George W Bush put a stop to that with two rounds of tax cuts (even he reportedly asked Cheney why they were doing the second one), by exploding spending on two wars, and by introducing a Medicare drug benefit mainly financed by massive borrowing.

Prior to Clinton, the last president to produce a budget that reduced the debt was Lyndon Johnson -- at the height of the War in Vietnam, the War on Poverty, and the Apollo program, not to mention the launch of Medicare and Medicaid.

The most important number is the ratio of debt to the economy. We came out of World War II with a public debt substantially bigger than annual GDP, but that ratio came down under every president from Truman through Carter except Gerald Ford; during his brief term it stayed roughly level. When Reagan took office the public debt been cut to under a third of GDP. But under Reagan and Bush 41 it rose rapidly, declined under Clinton, and then shot up again under Bush 43 and Obama, in the latter case largely as a consequence of Bush's wars and digging out of the Great Recession.

We should reduce our debt-to-GDP ratio, but it's not a crisis and debt in itself isn't inherently bad -- it's not crazy to take out a mortgage, and many well-run, successful businesses issue corporate bonds. Right now the annual deficit relative to the economy is lower than the average for the past 50 years, and with interest rates near zero in real terms we can easily afford to service the debt. Looking at the big picture, we'd actually be better off investing in our infrastructure in the near term, then paying down the debt over a longer time frame.

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That sounds nice, but we're still running a deficit. Erich Bloodaxe BSN Oct 2015 #1
yes and healthcare was "expanded" on the backs of working stiffs like me, and Doctor_J Oct 2015 #4
"TURD"way politics came about b/c the left doesnt vote reliably enough for dems pols saturnsring Oct 2015 #7
The left doesn't vote reliably because there is seldom anyone on the ballot who represents them Doctor_J Oct 2015 #9
Well letting the GOP take over Congress sure showed them!!!!! Adrahil Oct 2015 #10
I voted, as I always do. But people whose jobs are going to be shipped overseas, Doctor_J Oct 2015 #20
the left is usually unrealistically demanding and then vote green or stay home thinking saturnsring Oct 2015 #11
I Do Not Think That Is True erpowers Oct 2015 #13
Not so. zentrum Oct 2015 #23
A few things to remember about the public debt D Gary Grady Oct 2015 #14
Yes, but I look at it as an electoral issue as well. Erich Bloodaxe BSN Oct 2015 #15
That's a valid concern, but ... D Gary Grady Oct 2015 #19
Because... Grins Oct 2015 #32
thanks for posting and showing us again Dems are better at GOP's game SleeplessinSoCal Oct 2015 #2
Well established pattern: GOP administrations run up giant deficits, Hortensis Oct 2015 #3
The deficit has come down because of the sequester. former9thward Oct 2015 #5
Creative, though unsupported allegations on your part. LanternWaste Oct 2015 #29
There is no 'Tea Party'. They are Republicans. Rod Beauvex Oct 2015 #6
Good comment Rod saidsimplesimon Oct 2015 #12
That looks quite impressive SmittynMo Oct 2015 #8
Social Security, Medicare, and Medicaid are "entitlements" by definition! D Gary Grady Oct 2015 #16
no mystery, doublspeak from the GOP, corporate media. mountain grammy Oct 2015 #17
I don't get it. Xolodno Oct 2015 #18
News you won't hear on Fox left-of-center2012 Oct 2015 #21
Nothing to celebrate really. The republicans aren't funding anything Obama wants to do. craigmatic Oct 2015 #22
K&R! stonecutter357 Oct 2015 #24
TPers make it up as they go along and their sheeple believe them - LiberalElite Oct 2015 #25
The debt exists rafeh1 Oct 2015 #26
Mitt Romney is crying in a corner somewhere calguy Oct 2015 #27
They will never admit it. Jester Messiah Oct 2015 #28
Imagine it being $2T lower had voters supported more Democrats in the mid-terms. ffr Oct 2015 #30
For Teabaggers it's not really about deficits! Cosmic Dancer Oct 2015 #31
The current right wing is the biggest threat this country has ever faced. IHateTheGOP Oct 2015 #33
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