August 22, 2011 6:34 PM

National debt has increased $4 trillion under Obama

By
Mark Knoller
Topics
Economy

(Credit: CBS/iStockphoto)
The latest posting by the Treasury Department shows the national debt has now increased $4 trillion on President Obama's watch.

The debt was $10.626 trillion on the day Mr. Obama took office. The latest calculation from Treasury shows the debt has now hit $14.639 trillion.

It's the most rapid increase in the debt under any U.S. president.

The national debt increased $4.9 trillion during the eight-year presidency of George W. Bush. The debt now is rising at a pace to surpass that amount during Mr. Obama's four-year term.

Mr. Obama blames policies inherited from his predecessor's administration for the soaring debt. He singles out:

  • "two wars we didn't pay for"
  • "a prescription drug program for seniors...we didn't pay for."
  • "tax cuts in 2001 and 2003 that were not paid for."

CBSNews.com special report: America's debt battle

He goes on to blame the recession, and its resulting decrease in tax revenue on businesses, for making fewer sales, and more employees being laid off. He says the recession also resulted in more government spending due to increased unemployment insurance payments, subsidies to farms and funding of infrastructure programs that were part of his stimulus program.

At the first town hall meeting of his Midwestern bus trip last week, Mr. Obama told an audience in Minnesota that "the debt problem is real and the deficit problem is real."

But he also called in "a manageable problem."

The Gross National Debt now stands at 97.6 percent of the nation's Gross Domestic Product - the total value of goods and services produced by labor and property in the U.S.

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Facts about the debt

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Add a Comment See all 236 Comments
by RobAla January 26, 2012 11:02 PM EST
The most stark absence from President Obama's SOTU address was the fact that he totally ignored the massive debt we have accumulated under his administration. It grew under most Presidents, but it accelerated dramatically under him. He talked about making major cuts to defense - but did he indicate that he would use those savings to bring down the debt? NO. He talked about spending that money on other federal projects. He has NO PLAN to deal with our racing toward national bankruptcy. He has ZERO plans to stop this reckless and irresponsible nonsense.
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by rugrats43rmine February 19, 2012 7:37 PM EST
I would like you to answer 1 simple question. If you can answer this question, you would be the brightest person on this planet. How were the wars in Iraq and Afghanistan payed for? Think very carefully before you answer.
by lucci123 January 26, 2012 2:14 PM EST
GOP and Mitt Romney said that they understand middle class; however, middle class are the one that make the different on Mitt 13.9 % tax rate, middle class make the different on his tax when he put his money in offshore accounts to avoid paying tax rate here in U.S. Mitt Romney made hundred of million on the back of American workers and now he wants ordinary American people to pay the different on his tax. In fact, he's promoting to the public that when he becomes president, he should pay half of 13.9 % while ordinary American will pay more than today tax rate. Is Mitt Romney and GOP for ordinary American or they are on the side of their elites friends?

Do you know that we borrow China $700 billion dollars a year to pay for super rich tax cut, because this is what the GOP wants? Further, in the eyes of GOP, this $700 billion dollars do not drive federal deficit, but jobs growth. Where are the jobs creations from $700 billion dollars tax cut? According to Newt, we're still affected by 911. Isn't this more than 10 years ago? Apparently, Newt, Mitt, and GOP are still in denial or in a coma. Not too long ago, GOP & Bush brought down the U.S and global economy, and now they're an expert on fixing this?

GOP and Tear Party, please stop pretending like you care about federal deficit when you're the one that drive the federal deficit sky rock--from two wars that unpaid for and borrow $700 billion dollars a year from China to pay for super rich tax cut
that they don't need.

Warren Buffett told ABC that his secretary's Debbie works just as hard as he does and she pays twice the rate he pays. He thinks that's outrageous.
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by smartasss1 January 26, 2012 11:40 AM EST
For the past several months, Obama and the Democrats have been trying to engage the Republicans to reduce the deficit and the national debt. But the Republicans is blocking everything that the Democrats are trying.

The Republicans also cost us a ratings downgrade and put us in the brink of a government shutdown.

It seems that the Republicans would sacrifice America's economy for politics.
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by smartasss1 January 26, 2012 11:28 AM EST
Well it's true. Bush started 2 wars and gave tax cuts without cutting services. Wrecked the economy and did the bulk of the bailouts.

On the other hand Obama spent 1 Trillion for the stimulus. Although the stimulus would not have been necessary if Bush did not wreck the economy in the first place.

The stimulus was 1/3 tax cuts, 1/3 money back to state governments and 1/3 infrastructure projects. That does not sound too bad. At least that money went to us, not in Iraq.
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by saturdaysun10 January 31, 2012 9:06 PM EST
Do you know anything about what's been going on for the past 30 years? What began the current economic problem is the housing problems. During the Clinton years, community outreach programs, banks were forced to underwrite subprime mortgages to people who normally wouldn't qualify for loans. The Fed lowered interest rates artificially to make borrowing attractive. That sent out inaccurate signals to other borrowers, inflated housing prices, and when the loans came due, it all fell down like a house of cards. Yes, it was extremely irresponsible for the US to go to war for fabricated reasons, and for that I really do blame Bush. There is no one else to blame for that. However, as far as the current economic situation goes, it is very complicated, and it starts with the housing bubble that burst. Please remember, though, that there's a lot of blame to be shared. Democrats voted for the war and they voted for the stimulus, as well. Don't be blinded by party loyalties. Look for the truth, no matter how hard it may be.
by zevmo February 2, 2012 7:56 AM EST
saturdaysun10 is wrong. The community reinvestment didn't cause this problem, greed and deregulation did.

Any partisan hack can refuse to see this, and the attacks are as expected (blame the Democrat). The FACTS are that the CRA started under Carter. Last I checked, the nonsense began AFTER the deregulation in 98/99, passed by the REPUBLICAN house, with the Conservative Democratic President Bill Clinton signing it.
Under Bush, who wanted the ownership society to flourish, allowed and assisted in the total casino approach to banking and mortgages. THAT is what happened... unregulated capitalism on an unprecedented scale. And according to the FBI (under Bush), because of the deregulation, there was outright FRAUD involved, and mostly affecting minorities who qualified for regular loans but were sold bad loans b/c the bundler made more per closing.

To quote, "Don't be blinded by party loyalties. Look for the truth, no matter how hard it may be."
by geezerdude January 26, 2012 9:01 AM EST
Are you really gonna vote for this man again? When he adds the 20 million illegals, how many trillion will that add? They are gonna get all for free and you are going to pay for it. I don't think we can pay much more. You can't add 20 million people and think they are going to help. They are a BIG drain, duh. Lets give some more to the Banks and Unions. They are really for whats best for Americans.
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by rugrats43rmine February 19, 2012 7:40 PM EST
He has deported more illegal immigrants than Bush did.
http://abcnews.go.com/blogs/politics/2011/12/obamas-record-high-deportations-draw-hispanic-scorn/
by karlimhof January 26, 2012 3:27 AM EST
Well, tides out and since we (USA) are standing naked, why not see what's what?

Ever asked why we have that horrendous interest to pay? Why not issue our own currency? Why pay the Fed interest on OUR OWN MONEY. The Fed is simply a consortsium of banks gouging the American public. Thank it over before the next tide.
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by gep1955 January 25, 2012 9:24 PM EST
He applied for the job, campaigned for the job, told us he could do the job, promised us good things if we gave him the job. What would your boss tell you if you had poor results at your job and just started blaming everybody else. Thats right, he/she would tell you to pack up and take a hike!
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by askagain January 24, 2012 7:08 PM EST
When will people learn that you can't spend your way out of debt. Of course, there are people who only care about the short term or the here and now. The problem is our economy is still in a shamb;es, unemployment is still high, people are stilling losing their homes, and state and local governments are still raising taxes. Even if increasing the debt by 3 trillion had helped, we will be paying down that dent for generations to come.
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by stevehamilton858 January 25, 2012 12:38 AM EST
I guess you don't know very much about accounting. Virtually all of the country's increased debt was required to pay the liabilities that George W.Bush incurred. There a two generally recognized ways to keep a set of books: The accrual basis, which virtually all businesses use, and which conforms to Generally Accepted Accounting Practices, or "GAAP"; then there is the cash basis. Essentially everything reported about government finances is reported on a cash basis. So the current administration has to pay cash for the liabilities that it inherited, which in the case of the sitting president, were astronomical. It reminds me of something that often happens in cases of divorce, where the husband gets stuck with paying off the credit cards his wife used at Niemans and Saks. the Treasury has to pay the charge accounts that Bush used during his tenure. BTW, I have 25 years'experience as the CFO of several companies, and I've seen this happen in business, as well. The new management team has to raise cash, in debt or equity, to pay off obligations/liabilities that the prior management group incurred. There's an old saying among finance professionals, "follow the money" , which is what needs to be done in this case. You can't just grab a couple of headline statements to arrive at a reasoned and reasonable conclusion.
by davidfromaustin January 26, 2012 8:10 PM EST
Well said, Steve below. BTW there is a legal reason for the cash basis accounting. One legislature cannot bind a future one. Isn't that a riot!
by 23cdavis January 23, 2012 8:52 PM EST
LOL at Obama always having excuses.
Reply to this comment
by stevehamilton858 January 25, 2012 12:40 AM EST
See my reply to askagain; the Federal government today is paying off the obligations and liabilities that "W" incurred.
by noloyalisti January 23, 2012 7:17 PM EST
He is correct that the Bush Crime Family DID NOT INCLUDE the costs of their oil wars, welfare for the rich and Medicare Part D, a massive giveaway to the drug pusher corporations.
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