Is Federal Debt Shrinking, Rising, or Staying the Same?

[Thump553]

soapdish: I think the real "villian" causing the national debt increase was Reagan, not the elder Bush. That Bush unfortunately inherited a budget hopelessly skewed by Reagan. I'm of two minds as to what happened-its clear that financially Reagan was somewhat of a diaster for the economy, in particular the deficit, on the other hand, his wild military spending ultimately bankrupted the Soviet Union and caused the collapse of their system in a futile attempt to keep up. To end the cold war without the diasterous war we all feared, in exchange for somewhat screwing up our economy and government deficit, was worth it.

etech: You probably don't remember the high inflation of the late 60's and all of the 70's, a time when it was literally foolish to save money versus buying now. Congress, and the government, had to act responsibly and get the budget more into balance by raising taxes. The elder Bush, to his credit, realized this and was forced to eat his stupid campaign promise.

 

[etech]

Thum553, I actually do remember the high interest rates but I also remember that Pres. Carter had a lot to do with them. Reagan had two problems to deal with, you pointed out that his military spending was at least partially responsible for the downfall of the USSR. I also remember the period of better times started under Regan.

Regan also had a democratic Congress that refused to lower spending which was also partially responsible for the huge deficits.

Bush Sr. also had a democratic Congress, taxes went up, economy downturned.

 

[jjm]

etech - You are forgetting that the Republican-contolled Congress increased Slick's last budget by $35 billion more than he requested.

rahvin - Nice try, but hundreds of billions come due every year. As of April 30, 2001, $619 billion was scheduled to mature in one year or less. Another $1.492 trillion was scheduled to mature in 10 years or less. The government regularly issues 3-month, 6-month and 1-year bills, 2, 5, and 10-year notes and 30-year bonds. The numbers don't support your theory. The government has to keep refinancing the old debt that comes due because 1) the surpluses are not large enough yet, and 2) Congress keeps spending.

edit: fixed typo

 

[etech]

Nope, didn't forget that and look what happened to the economy.

 

[shifrbv]

jjm - etech - You are forgetting that the Republican-contolled Congress increased Slick's last budget by $35 billion more than he requested.


Right on!! The Republicans made a contract with America to reduce government waste and spending. They even had a list of "living dead" programs which they vowed to cut. But instead of cutting them, Republicans actually increased their budgets. And in some cases it was even above what the White House had requested!

As far as Reagan's defeat of communism, I actually read an interesting theory by a nationally-known economist, Jude Wanniski, that stated that because of the effects of Nixon's floating of the dollar in the 70's, if Russia had ignored the US standard float in making their budgets in the early 80's (as Marx would have advised them if he had been alive and in Moscow), the world might be a different place right now. Even demand side economists were advising the US that output in Russia at that time was the same as the US. But when Moscow chose to plan their budgets in relation to the floating dollar, they were doomed by the inflation it caused. Not sure.

 

[isuru]

Is there any country that's not in debt?

I'm quite surprised that the US has such a debt, isn't it the richest country in the world?

 

[Tominator]

....why don't you folks ever learn...

The Congress controls spending, not the President...

The budget goes up an average of 12% for EVERY government funded program EVERY YEAR! Without Congress doing a damned thing.

GW 'cut' the 12% in many Government programs. THAT is what the budget debate was about.

Did you know it is illegal NOT to spend the money allocated by Congress?

 

[chainbolt]

it's staying as a shame, cause Prez Bushinsky is making post elections gifts instead of recovering the national debt. :|:Q:disgust::frown: