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Author: PeterRabit Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1977319  
Subject: Facts are stubborn things Date: 11/28/2012 11:38 PM
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Facts are stubborn things.

This useful reminder from JoshRandall.

He explains:

The only time in recent history when there was a serious reduction of the deficit was when Newt and the Contract for America held a democrat president's feet to the fire and spending was reduced. The really big spike began when the dems took over Congress the last two years of the Bush administration.
http://boards.fool.com/positive-the-only-time-in-recent-hist...

But, getting back to facts, consider this graph:

U.S. Debt Burden
National Debt-to-Income (GDP) Ratio
1791-2010


http://static.seekingalpha.com/uploads/2010/12/14/saupload_a...

We see big peaks in US debt associated with the Civil War, WW I, the Depression, and WW II. And a big peak coinciding with Reaganomics (Increase Military Spending While Reducing Taxes) 1981 to 1993.

Now I'm guessing that for JoshRandall "recent history" begins while he was in grade school or high school. So we can't expect him to know much about the Reagan Era or the Post-War period. But I remember both of those periods so I call that RECENT HISTORY. And the most "serious reduction of the deficit" in recent history occurred from 1945 to 1980. That good work came during the terms of Truman, Eisenhower, Kennedy, Johnson, Nixon, Ford, and Carter.

Reagan's amazing achievement was to increase the national debt as much as during the Civil War with only the invasion of Grenada to help him along.

Clinton (and the Republican Congress) managed to stem the red ink, but that effort ended with the election of George Bush II.

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
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