U.S.

National Debt
$12.7 Trillion Added to the Debt Over the Last Decade
At the end of the Clinton Administration in 2001, the United States was on track to pay o its debt and accumulate +$2.3 trillion in savings by 2011. The past ten years drastically changed that, beginning with President Bushs tax cuts and ending with a 2011 total public debt of -$10.4 trilliona swing of -$12.7 trillion.

For the last decade, we have spent more money than we take in. In the year 2000, the government had a budget surplus. But instead of using it to pay o our debt, the money was spent on trillions of dollars in new tax cuts, while two wars and an expensive prescription drug program were simply added to our nations credit card. To make matters worse, the recession meant that there was less money coming in, and it required us to spend even more on tax cuts for middle-class families to spur the economy; on unemployment insurance; on aid to states so we could prevent more teachers and reghters and police o cers om being laid o . Because neither party is blameless for the decisions that led to this problem, both parties have a responsibility to solve it. President Obama

$3.6T - Economic and technical changes (e.g. lower tax income due to recession)
ECON TECHNICAL

SURPLUS

DEBT

$0

-$3.6 trillion
FINANCE DEBT

$700B - Debt issued for government nancing (e.g. student loans) $400B - One-time emergency costs and investments* (ex: small business bill, HIRE Act, education investments, and Census) $250B - December 2010 middle class tax cut deal $800B - Recovery Act $400B - Additional mandatory policies (e.g. Farm Bill)

-$700 billion

OBAMA POLICIES

-$1.4 trillion

-$12.7 trillion

The di erence between the savings once projected for 2011 and the actual debt is

$1.4T - Wars in Afghanistan and Iraq

$1.7T - Domestic and defense spending (e.g. education, veterans benets)

BUSH POLICIES

-$7 trillion

$200B - 2008 Stimulus, including TARP $300B - Unfunded prescription drug benets for seniors

$3T - Bush tax cuts

Debt Held by the Public (end 2011)

. trillion

Additional debt held by the government (e.g. debt owed to Social Security Trust Fund)

Total Debt

trillion
Analysis based on CBO data.

* These up-front costs are paid for by long-run savings that arent reected in the above since these savings occur after 2011.

Addressing the Debt Limit

A BALANCED APPROACH
raising the debt ceiling does not allow Congress to spend more money. It simply gives our country the ability to pay the bills that Congress has already racked up. In the past, raising the debt ceiling was routine. Unfortunately, for the past several weeks, the House of Representatives has essentially said that they will not vote to raise the debt ceiling unless the rest of us agree to their cuts-only approach. And if they follow through on that threat, it would be the rst time in history that the United States of America defaults on the debt that we owe. President Obama Reduces the decit by $4 trillion and cuts domestic spending to the lowest level since Dwight Eisenhower A bipartisan plan, with broad national popular support No tax increase for the 98% of Americans who make under $250,000

A CUTS ONLY APPROACH

Doesnt ask the wealthiest Americans or biggest corporations to contribute anything at all Relies only on deep cuts, including education, clean energy and medical research Means senior citizens pay more for Medicare to keep tax breaks in place for corporate jet owners and oil companies

DEBT CEILING INCREASES BY PRESIDENT

Kennedy: Johnson: Nixon: Ford: Carter: Reagan: George H.W. Bush: Clinton: George W. Bush: Obama: 4 times for a total increase of 5% 7 times for a total increase of 18% 9 times for a total increase of 36% 5 times for a total increase of 41% 9 times for a total increase of 59% 18 times for a total increase of 199% 9 times for a total increase of 48% 4 times for a total increase of 44% 7 times for a total increase of 90% 3 times for a total increase of 26%.

Would you rather reduce decits and interest rates by raising revenue om those who are not now paying their fair share? Or would you rather accept larger budget decits, higher interest rates, and higher unemployment?
President Ronald Reagan

Created: Tuesday, July 26, 2011

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