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URL:  http://boards.fool.com/so-what-caused-us-to-pile-up-16-trillion-dollars-30405304.aspx

Subject:  Re: Facts are stubborn things Date:  11/29/2012  2:11 PM
Author:  MadCapitalist Number:  1840993 of 1955228

So what caused us to pile up 16 trillion dollars in debt? Reaganomics, Bush tax cuts, and two unfunded wars.

Facts are stubborn things.

Peter


Yes, facts are stubborn things. More stubborn facts:

1) We haven't had a budget surplus when Democrats controlled Congress since 1969.

2) The Democrats controlled the House in every year of Reagan's Presidency and controlled Congress in 2 years.

3) Spending as a percentage of GDP hit a 35-year low (18.2%) in FY 2000 after 6 years of Congress being controlled by Republicans.

4) Total spending increased 29% in only two years from FY 2007 to FY 2009 under a Democrat-controlled Congress. Non-defense spending increased 31% in those two years.

5) The increase in non-defense spending since our last budget surplus (FY 2001) was $1.437 trillion. This is greater than our total income tax revenue (individual and corporate) in FY 2012. Yes, just the *increase* in non-defense spending was greater than our total income tax revenue (http://boards.fool.com/the-real-source-of-our-budget-trouble...). This increase in non-defense spending is 3 times the size of the increase in defense spending.

6) Even when tax revenue hit a post-World War II low as a percentage of GDP in 2009 (15.1%) because of the economic downturn, real per capita tax revenue ($6,183) was 17% higher -- in real terms -- than 30 years earlier ($5,276 in 1979). Yep, real per capita tax revenue was much higher after the Reagan and Bush "tax cuts," and yet these "tax cuts" contributed to our budget problems (http://boards.fool.com/taxes-and-spending-per-capita-in-2005...).

Those pesky facts.
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