$12.7 Trillion Added to the Debt Over the Last Decade
Graph source: http://www.whitehouse.gov/infographics/us-national-debt
For the last decade, we have spent more money than we take in. In the year 2000, the government had a budget surplus. But instead of using it to pay off debt, the money was spent on trillions of dollars in the nex tax cuts, while two wars and an expensive prescription drug program were simply added to our nationsl’s credit card…To mkae matters worse, the recession meant that there was less money coming in, and it required us to spend even more – on tax cuts for the middle-class families to spur the economy; on unemployment insurance; on aid to states so we could prevent more teachers and firefighters and police officers from being laid off.
Because neither party is blameless for the decision that led to this problem, both parties have a responsibility to solve it.
Think Obama’s a huge spender? Then you need to see these two charts.
January 24, 2013 at 9:01 am Posted by Ezra Klein – washingtonpost
On Tuesday, Kevin Drum posted this chart showing the growth in total government spending — that means federal, state and local — adjusted by population (“per capita”).
The takeaway, Drum says, is that “total government spending didn’t go up much during the Clinton era, and it’s actually declined during under President Obama. In the last two decades, it’s only gone up significantly during the Bush era, the same era in which taxes were cut dramatically.”
But some said Drum’s chart was a trick, as it looked at total government spending rather than just federal spending. So on Wednesday, he posted a second chart. This one only included federal spending and it didn’t adjust for population growth. The only thing is adjusts for is inflation. Here it is:
1. The Campaign to Cut Waste is hunting down and eliminating misspent tax dollars in every agency and department across the federal government. Already, the Administration has identified $3 billion in information technology cost reductions, is shutting down hundreds of duplicative data centers, and getting rid of excess federal real estate. Learn more
The President discussed the need to tackle our deficits over the long term through tax reform that asks those who can afford it to pay their fair share and modest adjustments to health care programs like Medicare. Though the issues of debt and deficits have dominated much of the recent conversation in Washington, the most immediate concern of most Americans is job creation and growing our economy. That is why President Obama laid out some common sense steps that can be taken right away to spur economic growth such as extending the payroll tax cut and unemployment insurance:
Specifically, we should extend the payroll tax cut as soon as possible, so that workers have more money in their paychecks next year and businesses have more customers next year.
We should continue to make sure that if you’re one of the millions of Americans who’s out there looking for a job, you can get the unemployment insurance that your tax dollars contributed to. That will also put money in people’s pockets and more customers in stores.
In fact, if Congress fails to extend the payroll tax cut and the unemployment insurance benefits that I’ve called for, it could mean 1 million fewer jobs and half a percent less growth. This is something we can do immediately, something we can do as soon as Congress gets back.
To learn more about President Obama’s plan for reform and fiscal responsibility: http://www.whitehouse.gov/economy/reform
U.S. Sees First Debt Reduction Since 2007 as Revenue Rises
Apr 29, 2013 1:41 PM PT By Meera Louis – bloomberg
The U.S. Treasury Department (USGG10YR) projected it will reduce government debt this quarter for the first time in six years as tax receipts exceed forecasts and spending diminishes.
The pay-down in net marketable debt was estimated at $35 billion in the April-June period, compared with a projection three months ago for net borrowing of $103 billion, the department said in a statement today in Washington. Treasury officials also see net borrowing of $223 billion in the quarter starting July 1. The estimates set the stage for the department’s quarterly refunding announcement on May 1, when debt issuance plans will be released.
A sustained economic expansion and across-the-board spending cuts known as sequestration may help deliver the first net decline in debt since 2007, when the government lowered borrowing by $139 billion before the global financial crisis spawned the worst recession since the 1930s. While the economy’s strength is helping boost tax revenue, total U.S. public debt outstanding is approaching $17 trillion.
“This is a substantial revision,” said Thomas Simons, a government debt economist at Jefferies LLC in New York. Still, “it is possible that Treasury will take a wait-and-see approach in evaluating the sustainability of the recent surge in tax receipts before making adjustments” to debt auctions, he said.