Monday, May 24, 2010

A picture is worth a thousand words


Courtesy dshort.com

As we get ready to enter the fall election season it's important to keep this chart in mind. It shows our total debt to GDP over the last 115 years. Note that debt as a percent of GDP has grown under Republicans - Reagan, Bush 1, Bush 2 - and Democrats - Obama, FDR, Truman, Wilson.

However, debt to GDP has also fallen under Republicans - Eisenhower - and Democrats - Clinton, JFK/Johnson.

The real point of this chart is that it makes no sense to get yourself worked into a tizzy thinking that all of the Federal debt is a result of President Obama's actions over the last 16 mths because the Republicans bear at least an equal responsibility (you could argue they bear a great responsibility but I'll leave that to the political pundits).

The state of the economy has a far greater impact on Federal Debt levels than the political leanings of any individual president or congressman.

Cheers.

2 comments:

Anonymous said...

IM HAVING TROUBLE BEING A CONSUMER. I NEED A RAISE SO I CAN CONSUME MORE AND HELP RAISE THE GDP!!!

CDM - Clayton said...

Take notice to rate which the graph is rising. Only FDR rose at what seems to be the same rate. Yes, republicans and other democrats had increases, but not at the current rate. Therefore, telling us that it may not be necessary to increase our debt at the rate which O'bama is. Also, note what happened after Reagan cut taxes and built our military, with a robust economy Clinton had budget supluses and was able to decrease national debt.