What's Really Driving The National Debt? Tax Cuts and Wars
From Chad Stone of the Center on Budget and Policy Priorities, a rather eye-popping chart:
As we’ve noted, my colleagues Kathy Ruffing and Jim Horney have updated CBPP’s analysis showing that the economic downturn, President Bush’s tax cuts, and the wars in Afghanistan and Iraq explain virtually the entire federal budget deficit over the next ten years. So, what about the public debt, which is basically the sum of annual budget deficits, minus annual surpluses, over the nation’s entire history?
The complementary chart, below, shows that the Bush-era tax cuts and the Iraq and Afghanistan wars — including their associated interest costs — account for almost half of the projected public debt in 2019 (measured as a share of the economy) if we continue current policies.
Altogether, the economic downturn, the measures enacted to combat it (including the 2009 Recovery Act), and the financial rescue legislation play a smaller role in the projected debt increase over the next decade. Public debt due to all other factors fell from over 30 percent of GDP in 2001 to 20 percent of GDP in 2019.
We focus here on debt held by the public, which reflects funds that the federal government borrows in credit markets to finance deficits and other cash needs. That’s the proper measure on which to focus because it’s what really affects the economy. We compare it to GDP because stabilizing the debt-to-GDP ratio is a key test of fiscal sustainability.
As Kathy and Jim note, simply letting the Bush tax cuts expire on schedule (or paying for any portions that policymakers decide to extend) would stabilize the debt-to-GDP ratio for the next decade. While we’d have to do much more to keep the debt stable over the longer run, that would be a huge accomplishment.
This is nothing new. What would be new is the Democrats exploiting it. I mean a dozen bill boards with this chart (or a reasonable facsimile) in every republican district in Ohio and Wisconsin and Florida and North Carolina. That would be bold.
boldy go and exploit it. Just do it. Or the voters will say, take your job and shove it.
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Are the Dems so fucking inept that they can't figure out how to use this basic fucking fact?
there was a surplus when Clinton left office.
Don't breathe in or you will drown.
“Why would anyone with a functioning brain believe this guy?”
Some guy with an eating disorder
Apparently they really don't want to win all that much do they ?
Insanity , it is what it is , there is no understanding it .
Yes.
Or else they support endless wars and the tax cuts. (Pssst... they do)
(They got you into another war in Libya. It's been more than 60 days and you keep going in deeper. No easy way out now.)
far left loon >.<
Anyone with two brain cells to rub together can figure that one out.
That excludes many Americans.
far left loon >.<
Our nation's bonds are being sold to overseas investors, of course. But let's not forget that they're also being purchased by the super-wealthy in our own nation. In other words, we give them a free tax cut. They use the money we just gave them to buy our bonds. Essentially, they make us pay interest to them on our own money.
Why make risky investment in job-creating enterprises when you can make risk-free investment in U.S. bonds?
To get a better return on your dollar.
P.S. Our nation's bonds are also being sold to you and me via Social Security. Congress borrows our Social Security dollars and replaces those dollars with T bills (special T bills but T bills none the less). And you can bet your last T bill $$$ that the Republicans are trying to figure out a way to not pay that money back to us. They are trying to figure out a way to use those Social Security $$$ that they have borrowed for years and years, they are trying to figure out how to just apply them as "taxes paid." They are trying to figure out how to renig on their debt. Republican debt that they used to give the richest 3% tax breaks over the past generation and a half. That is when the shit will hit the fan. Be ready for it.
the chart exposes the lie that is the reslug tax cut, meaning that the wrong-wing will now trot out "experts" to impugn the findings.
"No one ever said these people were logically consistent."
- watchdog -
That chart has 5 lines.Any chart with over 1 line will just confuse a Republican
We only need to inform/teach a small % of them. You will never teach/inform a Palinista or a Bachmannarian but there are more than a few who understand that tax cuts for the richest 1% is not fair and tax cuts for the richest corporation and the face of the planet is not correct or fair.
I see a look defeat on their faces. They agree on th wars but don't have the courage to admit it. On taxes they are just greedy.
"Someday somebody related to some of these sufferers, these victims, these collaterally damaged souls, may try to kill you. And I have to tell you, I think you’ll have it coming." - Christopher Cooper
Seeing something like this is always striking because it makes it very clear that what Republicans tell us is the "problem" is BS.
Also, what's up with all of these stupid names for these awful companies? Sallie Mae? Fannie? Freddie? I guess they seem "non-threatening".
I instantly think of the marvel on the faces of those too young to remember the Clinton administration.
“Why would anyone with a functioning brain believe this guy?”
Some guy with an eating disorder
As Dylan Ratigan said last Friday evening on the Bill Maher Show (may not be exact):
"The GOP disregards arithmetic and facts which allows them to escape reality"........
They have to lie , rewrite history and make up their own reality because the truth and the facts are their enemy .
Insanity , it is what it is , there is no understanding it .
I think they're plain, old, fucking stupid names.
far left loon >.<
whose free drugs, hip replacements, bypass surgeries and unconscionable long stays
in nursing homes (requiring us to visit weekly) are as bad as the damn wars. At least the tax cuts allow the job creators to create jobs.
“Why would anyone with a functioning brain believe this guy?”
Some guy with an eating disorder
where are they exactly? After eight long, illegitimate years of the shrub administration and their tax cut mantra, the result:
8 years, 0.5% job creation (source Bureau of Labor Statistics), the worst since record keeping began.
Second place: Boosh the slightly smarter - 4 years, 0.6% job growth
But to answer my own question, the jobs are in China, India, Brazil, anywhere but here.
"No one ever said these people were logically consistent."
- watchdog -
you hate old people? Someday you'll be one....
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Not one mention of raising revenue by creating JOBS !!!! Not one mention of raising revenue by Tax Law reform. No real effort (just hollow PR we all know is going nowhere) to pull back on Corporate Welfare. Ya'll are pathetic and clearly demonstrate that the Republicans have won. Ending the wars would be wonderful if immediate. Ending the "temporary" tax cuts of Bush should have been a "no brainer" as should re-regulating the banking system and enforcing the 500 year old property laws. But NOOOOOO! Let's fight for LGBT and leave business, campaign finance & financial reform to the Repubs & Lobbyists to write.
The Libs and our Reps are reduced to whining about what is inevitably going to happen because we elect people that are not interested in standing their principled ground. Why would they? There is no executive position or lobby gig waiting for themselves or the staff at the other end of helping the people of this country. Not much in the way of bribes (campaign contributions) right now, either.
The Left is LOST until it can figure out how to get elected someone that actually care about Americans and understands our names don't end with "INC".
Explanations exist; they have existed for all time; there is always a well-known solution to every human problem — neat, plausible, and wrong. [Mencken] You cannot solve a problem from the same consciousness that created it. [Einstein]
Not one mention of raising revenue by creating JOBS !!!! Not one mention of raising revenue by Tax Law reform.
Isn't that stuff OFF the table? (for some unknown, unexplained reason)
far left loon >.<
The problem is there are almost as many chicken hawks in the democratic party as there are in the GOP.
They are ALL on the take...
Sad but true .
Insanity , it is what it is , there is no understanding it .
Tax Cuts ,
Warsinvasions and occupations , insane military spending ( the on going money laundering operation ) and corporate welfare , add it all up ! Yet these bastards are going after medicare and social security saying we can't afford it ?Insanity , it is what it is , there is no understanding it .
If stand back and look at the picture there is ONE SINGLE WORD that explains EVERYTHING ! And the word is "DE-REGULATION" !!! If you take just TWO things out of the picture - Bush-Era Tax "DE-REGULATIONS" and Bush-Era Wall street "DE-REGULATIONS" (aka "Economic Downturn"). As a result we could have EVEN afforded all that WAR MONGERING/WARS and still would have NOT made a dent in the economy.
... all that trouble because of the "Reaganistic Communism".
P.S. Let's not forget where the OIL PRICES are thaks to Wall stret IMPUNITY. Don't let Wall stret SHOWER themselves with our money !
Get your lemonade, watch the traitors hang
Congress' TREASON have no boundaries, so does M$M's brainwashing/sidetracking
Republicans for Voldemort
Government does work, just not for YOU. Government work ONLY on the behalf of the Tycoons
Repeal stupid
the deficit: eliminate all spending except defense. there you go, problem solved.
believe we spend on "defence". We are offending, offence, by bullying the world with our "police" presence. And are committing genocide, a true evil, calling it collateral damage.
Is it the 21st century yet?
it's over half the budget. Maybe even eliminated altogether. Instead of making war, how about making Peace?
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"What's Really Driving The National Debt? Tax Cuts and Wars"
But Bush has been out of the Oval Office for almost 2 1/2 years. Until last January -- for two of those years -- the House, Senate, and White House were all under the control of the Democrats -- a glorious opportunity to WORK and undo some of the damage of the Bush years.
So what were the Democrats doing instead? They were practicing bending over and grabbing their ankles.
"As Kathy and Jim note, simply letting the Bush tax cuts expire on schedule (or paying for any portions that policymakers decide to extend) would stabilize the debt-to-GDP ratio for the next decade."
No more tax breaks for billionaires....
Add the trillions spent on "deep underground bases" and a "black budget" that congress doesn't have the legal means to inquire about, and you'll have much more to go on...
This assertion is a CROCK. I think the author knows that and is sitting back laughing at any and all who buy this garbage. The debt came from borrowing money. The Govt. is living way beyond it's means and is totally irresponsible with the check book so it needs to borrow to fuel it's spending addiction. The debt has NOT ONE THING to do with war or taxes, it is a result of spending more than they take in. End of story!
lack of tax revenue and too many wars. Courtesy of your hero, GWB.
not a crock at all.
me-oww!
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