Reply #33: The First Graph shows the TOTAL Federal Debt in relation to GDP [View All]

We as a nation have had a debt since Andrew Jackson was president. But because of inflation, population growth, and increase in GDP, the only true "apples to apples comparison" is to compare the debt to the annual GDP of a particular year. Raw numbers or totals distort the picture.

For example GWB ran up far more total debt than did Ronald Reagan, but Reagan ran up far higher debt in relation to the nation's GDP, in effect Reagan is the biggest deficit spender in recorded human history, in-spite of the fact that GWB ran up far higher total cumulative amounts of debt. Under GWB the population was larger, the economy (GDP) was far bigger, and inflation reduces his debt expansion in constant terms as opposed to Reagan.

The second chart points to the difference between a particular president's increase in spending over the previous president, and the increases in revenue (taxes) that particular administration took in. Every president will spend more than his predecessor (inflation, population growth, increased GDP). His tax policy will determine how much revenue is collected. How the tax policy is targeted may increase job creation, (ex Clinton) which will help increase revenue. The second chart disproves the claim that "Trickle Down Economics," increases tax revenues and spurs job creation. The opposite occurs. Revenues plummet, and job creation slows dramatically (see http://bureaucountydems.blogspot.com/p/job-growth.html ) Combined with higher spending increases this results in massive deficits and an increase in the cumulative National Debt.

In a nutshell, "Republican presidents do not live within their means." Our children will pay the difference.