A truly historic presidency
Amidst the hype concerning the so-called era of austerity and budget
cuts, the national debt is rapidly marching towards the $15 trillion
milestone. As of late last week, the national debt stood at $14.94 trillion.
For those of you keeping score, that number has grown by $646 billion
since the debt ceiling was raised on August 2, as part of the great
bipartisan Budget Control Act of 2011. In other words, the debt has increased by over $8 billion per day during the past 11 weeks.
Let's put these numbers in historical perspective.
Obama likes to blame all of our economic woes on his predecessor. The
burgeoning national debt is no different, as he blames its precipitous
rise on the Bush tax cuts. Well, President Bush and his merry band of
big-government conservatives were anything but budget hawks;
nonetheless, it took them 92 months – almost the entire 8-year tenure –
to accrue $4.3 trillion in debt. Obama has accumulated that much debt
in just 33 months. Put another way, it wasn't until 1997 that we
amassed as much debt as Obama has in 2.5 years.
There is also another grim, but often overlooked statistic of Obama's empire of debt.
national debt consists of two components; debt held by the public and
intra-government debt. The debt held by the public is the sum of the
treasury securities held by those outside the federal government, with
the lion's share owned by foreign countries. The debt held by the
public currently stands at $10.2 trillion. The other component, the
intra-governmental share, is owed to other federal agencies and
accounts, most prominently, the non-existent Social Security Trust Fund,
as well as accounts holding pensions for military veterans and
government workers. That share of the debt currently stands at $4.73
many years, liberal economists have implored us to ignore the gross
national debt, which includes the intra-governmental share, because that
is money we 'owe ourselves.' That in itself is a dubious argument
because we will still need to issue more (public) debt, print more
money, or raise taxes to pay for SS and federal pensions – unless we cut
benefits. Nevertheless, let's play along for the moment, and focus
primarily on the "bad debt," the share that is held by the public.
Are you ready?
Obama has increased the debt held by the public by $3.9 trillion; from $6.3 trillion to $10.2 trillion.
Accordingly, 91% of Obama's $4.3 trillion debt has come from the
so-called bad debt! Bush had increased that share of the debt by
roughly $3 trillion during his entire 8 years as president.
what is Obama's plan to reverse the tide of indebtedness and fiscal
insolvency? He wants to spend more and raise taxes. However, the
reality is that at $6-8 billion in debt per day, and an overall share of
$132,000 per taxpayer, there aren't enough Warren Buffets to tax in
order to solve the problem. In fact, if we confiscated all of the
income from the top 1% of taxpayers, we would only net $938 billion
dollars … and proceed to lose all future revenues in subsequent years.
Even as our debt explodes to record levels, Americans' collective net
worth has fallen $5.5 trillion since 2007. So during the same time that our debt has increased over 65%, our net worth has dropped by 8.6%. The golden goose is dead.
too many Republicans desire to merely trim around the edges, while
sustaining the fundamentals of the prodigal government functions. Many
of the presidential candidates have touted their ideas of trimming
"waste, fraud, and abuse." While those ideas are laudable and
imperative, they are also woefully insufficient. We will never salvage
our children's future unless we eliminate full departments, institute
market reforms for retirement and healthcare, and shut down much of the
welfare state. We need more bold solutions form our presidential
candidates – aside from those who have no problem with Iran developing a nuclear bomb.
Otherwise, our next Republican president will risk being the $20 trillion man.
Cross-posted to RedState.com