The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Tuesday, May 20, 2014

Obama The US Spending Fiend!


The following is a long piece. If you do not prefer to take a few minutes for "perspective," feel free to click off this piece.  We at the TPI will not always follow the common axiom of, "short pieces get more reads." Well, of course, but there are many times when quick quippy reads simply fail to impart desired information. We will always opt  error on the side of more.


You will find a demarcation marker in the piece where pulling-out (excuse the vernacular) works, but as is always the case fails to deliver the bang as the non-pullout. 
__________________


Obama's first State of the Union Address was in January 2010. The 44th President of the United states appealed for unity. His heartfelt appeal was snubbed by a GOP buoyed by the Koch brothers Tea Party initiative. A movement that has fizzled to nothingness but only after handing the GOP the US House of Representatives. The meme to the left was eventually developed by the NRCC and is indicative of GOP propaganda.

No screed about the US Deficit and Debt is complete without a strong Politifact "False" badge.

Politifact July 2012
Ribble

Says President Barack Obama "built this $16 trillion debt."

Reid Ribble on Thursday, August 30th, 2012 in an interview

President Obama 'built' nation's $16 trillion debt, GOP Rep. Reid Ribble says

When President Barack Obama said "If you’ve got a business, you didn’t build that," he meant that success in business was the result of government, not hard-working people, according to Republican presidential nominee Mitt Romney.
Read more linked via title above 



If you are here for a quick read, and I don't blame you, you can probably leave the piece after the following graphic from Talking Points Memo. You may want to focus your attention on the red band and the band just above it: the Wars in Iraq and Afghanistan.


Yes, of course President Obama has raised the National Debt by $6 trillion.

Liberal Bias captured the essence of conservative derangement regarding the deficit and debt via one of its very entertaining:  

5 graphs that Teaparty conservatives will LOVE, proving Obama has destroyed everything!

Obama has completely exploded the deficit!

This is one of the MOST well-known facts about Obama: he has exploded the deficit completely! This graph proves it. As you can see, Carter and Reagan/Bush kept the deficit pretty much flat during their terms. Clinton and W. Bush both decreased the deficit slightly. But WHOAH OMG can you see that trend line we drew for Obama!!??  It just goes up and up! 
Now, some of you might think we took some liberties with that trend line. For one thing, we sort of started it in 2007, but everyone knows that this is because of the pre-emptive problems caused by Obama. Some say it might even have been the influence of his time machine (the same one he used to go back in time to plant fake birth certificates in Hawaii). But either way, what matters is that trend line that we drew: LOOK AT IT! Disgusting, huh?
Deficits under liberals what a failure Obama sucks
The Right avoids mention of almost $4 trillion handed to Obama via Bush; a gift which also carried yeas of interest towards the Debt.


But, how did Obama spend the $6 trillion? The level of Obama spending depends on your reading source. Some conservative writers have the figure at $7+ trillion. For the conservative writers, "I'll see your $7 trillion and raise you $11 trillion ..in Obama spending." Let's just go for the gusto, after all this is an election year!

President Obama has increased the national debt. The president has also sat in the Oval Office during periods of reductions in the US (annual) deficits. As a non-economist, I believe reductions in the annual deficit is integral to lowering the nation's national debt. Since the GOP fought long and hard against injections of revenue via "hands-off" the Bush Tax cuts, any Obama Administration spending would and has exacerbated the deficits/debt.

The Congressional Budget Office during 2013 reported flattened federal spending from the Obama Administration.




Read more after the break



A White House view of the deficit since 2009.
(chart and comment excerpt)

The significant decrease in the deficit from last year was due to a combination of higher receipts and lower outlays in 2013, which can be attributed to a variety of factors, including a stronger economy, the expiration of certain tax cuts for high income Americans, and spending reductions like those achieved from the troop drawdown in Afghanistan as proposed in the President’s Budget. 
Veronique de Rugy, senior research fellow at the Mercatus Center at George Mason University, published a piece in January 2014 around a central theme that the US is in high levels of spending for the long-term. We have posted two charts from the piece to illustrate how deficit spending over time increased, remained stable or declined during presidential administrations since FDR.

Let's take a quick peep at a comment from the web page The Straight Dope. The comment was placed n the board in 2012, so the deficit/debt numbers are now higher. I find value in the simplistic equation based on its relevance to Obama's deficit collar placed on his neck via Bush/Cheney.
Obama inherited a $1.3 trillion annual deficit.

$1.3 trillion x 3 = $3.9 trillion + supplemental stimulus of $800 billion = $4.7 trillion. 

(The deficit peaked a little higher than $1.3 trillion in 2010)
Which is roughly the amount of debt added since Jan 2009.
If the Bush Administration handed Obama even one penny of deficit spending, was there an expectation the Obama (a moderate Democrat) would simply sit on his laurels and service the Bush deficits/debt?  Where is the logic in expectation of Obama as a Bush Debt Servicer. Is it OK to pay for two wars (with Obama escalation in Afghanistan based on Bush abandonment)? Is it is OK to watch and not feel 47 million Americans without medical and dental coverage (denied services, lifetime maximums, women charged more for policies, and the Bush Donut Hole)?  How about Obama ignoring the Great Bush Recession Killer commonly know as "The Stimulus?"  And, of course, by sitting in the White Hose the president assumes the debt associated with Social Security and Medicare. 

[The quick reader's Demarcation Point!]

In mid July 2011, the white House published a comparative graphic that when coupled with other related data and graphics, aids in knowledge of Obama's spending. During the same month the New York Times published a piece, that serves as a 2011 example of "other related data and graphics." 

In May 2012, the Washington Post published a response to a Mitt Romney campaign claim "Obama has raise the National Debt by $5 trillion dollars." 


The True Story of the National Debt
What matters is how big the national debt is compared to the national economy. As you can see in the graph, that ratio went down from the end of World War II until Reagan's first budget. So what went wrong?
US national debt-to-GDP ratio. Who did it?
In 1981, supply siders, took over Reagan's budget. Their supply-side "theory" said that cutting the taxes of people in high tax brackets, the rich, would increase government revenues. So they did. And since government revenues would increase, it was OK for Reagan to increase the military budget. As it turned out, lower taxes and more spending did just what you'd expect. And, so the Republicans became the party of barrow-and-spend. And for 20 out of 20 budgets under Reagan and the Bushes, the Republicans raised the debt relative to the size of the economy.
When Bush handed the economy to Obama he had the debt growing at the rate of $3 trillion per year, and his last budget didn't end for another eight months. A debt growing like this is hard to stop because when the government cuts spending or raises taxes, the two things that balance the budget, it hurts the economy. And since the economy Obama was handed was collapsing at the rate of 10 million jobs per year, that was not an option.
The green line in the graph shows what would have happened if the Republicans had balanced their budgets, as they claim should be done. Notice that Clinton would have reduced the debt even more. This is because, much of his budget problem was interest on the debt accumulated by Reagan and Bush Senior. Without the burden, he would have almost finished paying of the entire national debt.
US-national-debt-GDP
This page explains
the green line

NOTE via The Pardu: More president to president with "Voodoo Economics" front and center.

Republican National Debt: $12 Trillion and Counting



  
Republicans blame the "Democratic Congress" for their debt increases. The trouble is that Congress was only Democratic 8 out of the 20 years, and in those 8 years, on average, Congress passed smaller budgets than the Republican presidents requested. The specifics are all right here: It Was the Republicans.
So, let's add up the debt under Reagan and the Bushes. We can't blame Reagan for the debt's increase until his first budget took effect, October 1, 1981. Then, for 12 years until Sept. 30, 1993, the Republicans ballooned the debt. Later, George W. Bush took over.
  • Under Reagan and Bush: $3.4 Trillion increase in the debt.
  • Under George W. Bush: $6.1 Trillion.[1]
  • Total:  $9.5 Trillion. (without counting interest)
But wait, there's interest on that debt ... continued below the graph.
Reagan-Bush-National-Debt
The debt went up during Clinton's years only because of $2.2 Trillion interest on the Reagan-Bush debt. Otherwise Clinton would have paid off most the remaining WWII debt. G.W.Bush got sand-bagged by Reagan.
Just like a mortgage, the debt incurs interest, so the Reagan-Bush-I debt grew during the Clinton years. The average debt interest rate in those years was about 6.5%, which would increase it over 50% without compounding, but with compound interest the total debt – including interest – increased by $2.2 trillion.
  • Total Republican debt from above: $9.5 trillion
  • Interest on Reagan-Bush debt under Clinton: $2.2 trillion
  • Interest on $11.7 trillion after G. W. Bush: $0.3 trillion
  • (detailed calculation)
  • Grand Total Reagan-Bushes Debt:  $12 trillion (as of Sept. 30, 2010).
If the Republicans had not run up this $12 trillion debt, we could easily have pulled out of the Great Recession.

PopNotes used above:
1: Stimulus
The Obama stimulus package spent $36 billion ($0.036 trillion) before the end of Bush's final budget years. This has been subtracted.
the green line: The Green Line on the graph above shows what the debt would have been if Reagan and the Bushes had balanced their budgets. (Full-size graph)
sand-bagged: Not as Bad as He Looks
Almost half of the debt that Bush II ran up was from interest on the Reagan-Bush-I debt, but it was still all Republican.


Additional reading about US Deficit and Debt




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