The National Debt is now $17 trillion and is growing at decreasing, but unacceptable, rates. The last time the federal budget was “balanced” was 2001, the last year of the Clinton presidency. I say “balanced” because even though the cumulative budget surplus from 1999 to 2001 was $559 million, the national debt increased by $151 million. Go figure. I suspect a little cooking of the books. Since 2001, the national debt has increased by $11.2 trillion. And this does not include $126 trillion in unfunded liabilities.
Another, and perhaps more significant, way of looking at debt is as a percentage of Gross Domestic Product, the amount of all goods and services produced, or total income, in the United States. National debt amounted to 64.8 % of GDP in 2008. By 2013 debt had grown to 101.6% of GDP.
Republicans point out that Obama has added more to the national debt in his first 4 2/3 years a president than Bush added in his 8 years. That’s not quite true. Bush came in with a $5.8 trillion debt and left $11,5 trillion debt, of an increase of $5.7. Obama has so far brought it up to $17 trillion, an increase of $5.5 trillion. But he is getting there, only $.3 trillion to go.
Obama also promised to cut the deficit in half during his first four years. He nearly made it. Bush’s deficit for 2009 was $1.4 trillion. Obama’s FY 2013 deficit was $973 billion. The planned deficit for 2014 is $744 billion. I’m a little suspicious of this because nobody knows the future cost of Obamacare.
When it comes to the economy, it seems the people in charge just can’t get it right. They have used everything they could think of that would give Maynard Keynes a permanent smile. George Bush tried TARP to the tune of $700 billion bucks, reduced to $475 billion by Dodd-Frank. Obama gave us the $830 billion economic “stimulus” for shovel-ready projects that he jokingly said later weren’t there. Fannie Mae and Freddie Mac were bailed out to the tune of $187.5 billion. We had cash for clunkers and the auto bailout, which gave Chrysler to Fiat and the UAW and took General Motors from stockholders and gave it to the unions. The Fed is attempting to create a trillion bucks a year in funny money. All of this is supposed to be subject to the “Keynesian Multiplier” and speed us out of the “Great Recession.” Didn’t happen. We have the slowest recovery in the history of recoveries from recessions. What went wrong? Liberals, who agree with Keynes that government is the answer to all problems, say that we didn’t spend enough. Monetarists say that we didn’t create enough funny money. The truth is, Keynes is dead and his multiplier never existed. People have to spend their newly found money for the multiplier to work, and banks have to lend money for it to be created.
The National Debt is now $17 trillion and will be at least $25 trillion in ten years, probably more with Obamacare dragging the economy down. We have three options. The government can cut spending, which won’t happen, or drastically increase taxes, which would make Americans very unhappy (except those who pay no income tax and live off the government teat.) The only feasible option is to grow our way out of our debt crisis while logically controlling the growth of spending. We must not only balance the budget (Obama has not had a budget since he has been in office), but we must have a surplus every year. And not the fake ones of Clinton that resulted in increases in the national debt.
Current government policies do not foster economic growth. Obamacare is turning our work force into the unemployed or part-timers, and creating dismal expectations among producers. Large companies are announcing layoffs of thousands of workers daily. New EPA regulations are killing the coal industry and will cause tens of thousands of workers to lose their jobs.
I am deeply concerned about the future of our country.

Posted by at October 26, 2013
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