Bush Administration Adds $4 Trillion To National Debt
Mark Knoller is a White House Correspondent for CBS News.
With no fanfare and little notice, the national debt has grown by more than $4 trillion during George W. Bush’s presidency.
It’s the biggest increase under any president in U.S history.
On the day President Bush took office, the national debt stood at $5.727 trillion. The latest number from the Treasury Department shows the national debt now stands at more than $9.849 trillion. That’s a 71.9 percent increase on Mr. Bush’s watch.
The bailout plan now pending in Congress could add hundreds of billions of dollars to the national debt – though President Bush said this morning he expects that over time, “much if not all” of the bailout money “will be paid back.”
But the government is taking no chances. Buried deep in the hundred pages of bailout legislation is a provision that would raise the statutory ceiling on the national debt to $11.315 trillion. It’ll be the 7th time the debt limit has been raised during this administration. In fact it was just two months ago, on July 30, that President Bush signed the Housing and Economic Recovery Act, which contained a provision raising the debt ceiling to $10.615 trillion.
Deputy Press Secretary Tony Fratto declined an invitation to comment on the enormous jump in the national debt during Mr. Bush’s presidency. He referred me to OMB – the Office of Management and Budget, which tried to make the case that as a percentage of the economy, the national debt is not that big.
In its budget documents in February, OMB estimated that next year’s national debt would hit $10.4 trillion – which it said would amount to 69.3 percent of the gross domestic product – the standard measure of the size of the economy.
That’s high – but far from an all-time high. After World War II, the national debt soared to over $270 billion – a quaint figure by today’s standards. Numerically, it’s less than the amount of federal deficit we now run up in a single year. But back in 1946, the Debt amounted to 121.7 percent of the size of the total economy.
By the time Richard Nixon began his second term in 1973, the national debt had grown to $466 billion – though as percentage of GDP, it had fallen to 35.7 percent.
Today, OMB press secretary Corinne Hirsch, renewed the oft-made government argument that reporters should focus on just that part of the national debt that is held by the public – now about $5.6 trillion and not include that portion billed as “intra-governmental holdings” – money the government owes itself – especially the Social Security and Medicare trust funds.
Of course, the government doesn’t have that money either. It’s been spent.
President Bush made that point himself on April 5, 2005, when he paid a visit to the offices of the Bureau of the Public Debt in Parkersburg, W.Va.
He was shown a white file cabinet with keypad locks on each of its four drawers in which the Social Security Trust Fund is stored. On that day, there was no cash – as he noted in a speech later in the day.
“There is no 'trust fund,' just IOUs that I saw firsthand, that future generations will pay – will pay for either in higher taxes, or reduced benefits, or cuts to other critical government programs,” he told an audience at West Virginia University.
The government didn’t have the money it owed itself back then – and still doesn’t.
A couple of weeks after he took office, President Bush addressed the Republican Congressional Retreat in Williamsburg and declared that his budget “pays down the national debt.”
In recent years, President Bush almost never mentions the national debt.
(AP)
It’s the biggest increase under any president in U.S history.
On the day President Bush took office, the national debt stood at $5.727 trillion. The latest number from the Treasury Department shows the national debt now stands at more than $9.849 trillion. That’s a 71.9 percent increase on Mr. Bush’s watch.
The bailout plan now pending in Congress could add hundreds of billions of dollars to the national debt – though President Bush said this morning he expects that over time, “much if not all” of the bailout money “will be paid back.”
But the government is taking no chances. Buried deep in the hundred pages of bailout legislation is a provision that would raise the statutory ceiling on the national debt to $11.315 trillion. It’ll be the 7th time the debt limit has been raised during this administration. In fact it was just two months ago, on July 30, that President Bush signed the Housing and Economic Recovery Act, which contained a provision raising the debt ceiling to $10.615 trillion.
Deputy Press Secretary Tony Fratto declined an invitation to comment on the enormous jump in the national debt during Mr. Bush’s presidency. He referred me to OMB – the Office of Management and Budget, which tried to make the case that as a percentage of the economy, the national debt is not that big.
In its budget documents in February, OMB estimated that next year’s national debt would hit $10.4 trillion – which it said would amount to 69.3 percent of the gross domestic product – the standard measure of the size of the economy.
That’s high – but far from an all-time high. After World War II, the national debt soared to over $270 billion – a quaint figure by today’s standards. Numerically, it’s less than the amount of federal deficit we now run up in a single year. But back in 1946, the Debt amounted to 121.7 percent of the size of the total economy.
By the time Richard Nixon began his second term in 1973, the national debt had grown to $466 billion – though as percentage of GDP, it had fallen to 35.7 percent.
Today, OMB press secretary Corinne Hirsch, renewed the oft-made government argument that reporters should focus on just that part of the national debt that is held by the public – now about $5.6 trillion and not include that portion billed as “intra-governmental holdings” – money the government owes itself – especially the Social Security and Medicare trust funds.
Of course, the government doesn’t have that money either. It’s been spent.
President Bush made that point himself on April 5, 2005, when he paid a visit to the offices of the Bureau of the Public Debt in Parkersburg, W.Va.
He was shown a white file cabinet with keypad locks on each of its four drawers in which the Social Security Trust Fund is stored. On that day, there was no cash – as he noted in a speech later in the day.
“There is no 'trust fund,' just IOUs that I saw firsthand, that future generations will pay – will pay for either in higher taxes, or reduced benefits, or cuts to other critical government programs,” he told an audience at West Virginia University.
The government didn’t have the money it owed itself back then – and still doesn’t.
A couple of weeks after he took office, President Bush addressed the Republican Congressional Retreat in Williamsburg and declared that his budget “pays down the national debt.”
In recent years, President Bush almost never mentions the national debt.
Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."
Obama caused the Housing crisis, for those of you who cannot read or refuse to read. Obama was the lawer who caused the housing crisis by forcing banks to give loans to folks who cannot afford them or lose your FDIC funding. Now people cannot afford the house they got and everyone wants to blame George Bush. How about using that pea that rattles between your ears and read the truth don't listen to the Propaganda. a.k.a. the alphabet news services.
From the very beginning he and his fellow Republicans ran on the premise they could do anything they wanted and spend anything they wanted since they were on the upswing and the democrats hopelessly vanquished. Conservative pay as you go economics were never woven into the fabric of governance.
Bush narrowed his list of advisors and heeded those who agreed with him rather than those with ability. Just look at the sad fate of Colin Powell for proof of this.
Then plunging alone into a foolhardy and expensive war in Iraq that someday we will just have to walk away from, he demonstrated the spendthrift mentality of arrogance.
Imagine the prior to the invasion of Iraq anyone in government who mentioned a figure approaching the true cost of the war was cast out and replaced by lesser more pliant ability.
Thus, systematically we are led by a fool and approach being a beggar nation with a huge arsenal and impoverished population.
We had better assess ability more carefully the next time or it could be our last chance.
From the very beginning he and his fellow Republicans ran on the premise they could do anything they wanted and spend anything they wanted since they were on the upswing and the democrats hopelessly vanquished. Conservative pay as you go economics were never woven into the fabric of governance.
Bush narrowed his list of advisors and heeded those who agreed with him rather than those with ability. Just look at the sad fate of Colin Powell for proof of this.
Then plunging alone into a foolhardy and expensive war in Iraq that someday we will just have to walk away from, he demonstrated the spendthrift mentality of arrogance.
Imagine the prior to the invasion of Iraq anyone in government who mentioned a figure approaching the true cost of the war was cast out and replaced by lesser more pliant ability.
Thus, systematically we are led by a fool and approach being a beggar nation with a huge arsenal and impoverished population.
We had better assess ability more carefully the next time or it could be our last chance.
From the very beginning he and his fellow Republicans ran on the premise they could do anything they wanted and spend anything they wanted since they were on the upswing and the democrats hopelessly vanquished. Conservative pay as you go economics were never woven into the fabric of governance.
Bush narrowed his list of advisors and heeded those who agreed with him rather than those with ability. Just look at the sad fate of Colin Powell for proof of this.
Then plunging alone into a foolhardy and expensive war in Iraq that someday we will just have to walk away from, he demonstrated the spendthrift mentality of arrogance.
Imagine the prior to the invasion of Iraq anyone in government who mentioned a figure approaching the true cost of the war was cast out and replaced by lesser more pliant ability.
Thus, systematically we are led by a fool and approach being a beggar nation with a huge arsenal and impoverished population.
We had better assess ability more carefully the next time or it could be our last chance.
From the very beginning he and his fellow Republicans ran on the premise they could do anything they wanted and spend anything they wanted since they were on the upswing and the democrats hopelessly vanquished. Conservative pay as you go economics were never woven into the fabric of governance.
Bush narrowed his list of advisors and heeded those who agreed with him rather than those with ability. Just look at the sad fate of Colin Powell for proof of this.
Then plunging alone into a foolhardy and expensive war in Iraq that someday we will just have to walk away from, he demonstrated the spendthrift mentality of arrogance.
Imagine the prior to the invasion of Iraq anyone in government who mentioned a figure approaching the true cost of the war was cast out and replaced by lesser more pliant ability.
Thus, systematically we are led by a fool and approach being a beggar nation with a huge arsenal and impoverished population.
We had better assess ability more carefully the next time or it could be our last chance.
From the very beginning he and his fellow Republicans ran on the premise they could do anything they wanted and spend anything they wanted since they were on the upswing and the democrats hopelessly vanquished. Conservative pay as you go economics were never woven into the fabric of governance.
Bush narrowed his list of advisors and heeded those who agreed with him rather than those with ability. Just look at the sad fate of Colin Powell for proof of this.
Then plunging alone into a foolhardy and expensive war in Iraq that someday we will just have to walk away from, he demonstrated the spendthrift mentality of arrogance.
Imagine the prior to the invasion of Iraq anyone in government who mentioned a figure approaching the true cost of the war was cast out and replaced by lesser more pliant ability.
Thus, systematically we are led by a fool and approach being a beggar nation with a huge arsenal and impoverished population.
We had better assess ability more carefully the next time or it could be our last chance.
From the very beginning he and his fellow Republicans ran on the premise they could do anything they wanted and spend anything they wanted since they were on the upswing and the democrats hopelessly vanquished. Conservative pay as you go economics were never woven into the fabric of governance.
Bush narrowed his list of advisors and heeded those who agreed with him rather than those with ability. Just look at the sad fate of Colin Powell for proof of this.
Then plunging alone into a foolhardy and expensive war in Iraq that someday we will just have to walk away from, he demonstrated the spendthrift mentality of arrogance.
Imagine the prior to the invasion of Iraq anyone in government who mentioned a figure approaching the true cost of the war was cast out and replaced by lesser more pliant ability.
Thus, systematically we are led by a fool and approach being a beggar nation with a huge arsenal and impoverished population.
We had better assess ability more carefully the next time or it could be our last chance.
If we are going to fix this problem for those who save for retirement, we have to put money in accounts that are not subject to wall street.
Also, there needs to be a middle class work force. Since the 1980''s more and more companies have closed their doors, consolidated or moved over seas. More of America''s incomes are going to foreign countries. More profits are non-taxable. More people are laid off than working? The financial foundations cannot hold the weight of these burdens.
Obama will fix this with jobs here at home, adding to the economy with much less money than a 700 billion dollar rich man''s bailout which allows for the criminals to walk away with no responsibility.
Our financial system needs to be overhauled. A foundation of rules must be laid on firm principles. Accountability must meld smoothly and be absolutely obvious to everyone. Savings accounts must not be subject to the markets, savings plans are better, and yes, there could be savings that invest in our US citizens.
This can be done, if, our leaders will take the brave road to final financial security, with sound, practical principles.
- by rfn1 September 29, 2008 5:33 PM EDT
- Ken Lay + Enron VERSUS Shumer, Frank, Dodd Fannie & Freddie M., could you help us decide the biggest disaster?
- Reply to this comment
See all 14 Comments