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David Letterman asked Pres. Obama about the debt. First of all, note that the prez does not appear to understand the difference between debt and deficit. Letterman specifically references the overall (accumulated) 'debt,' and Obama immediately mixes that up with the annual surplus/deficit. There has not been an overall surplus since the Andrew Jackson admin in the 19th century. We did have several years of annual surpluses under Pres. Clinton, as Obama says, but we never got close to an overall surplus.
This myth says that the Iraq war and Bush tax cuts were major factors in fueling the national debt. Obama says:
Quote:
Originally Posted by Pres. Obama
We decided to launch two wars on a credit card. Uh...we cut taxes twice without finding offsetting costs for it....
This is utter nonsense. For one thing, Obama strongly supported going to Afghanistan from the start, so by including that war he appears to be taking a jab at himself. The war in Iraq, which he did oppose, was about 3% of total federal spending for the nine years that it lasted. Eliminating it as a factor would not have appreciably changed the debt outlook.
Secondly, although Pres. Bush did cut tax rates, total tax revenue was relatively flat during the Bush years. Federal revenue was $2.215 trillion in 2001, $2.288 trillion in 2008 (inflation adjusted to 2005 dollars). So neither Iraq nor the Bush tax cuts account for much of the debt problem.
The problem under Bush was overall spending, just as it has been during the Obama years. Obama is right about one thing--the recession did cause a drop in tax revenue. But he was wrong about almost everything else. No wonder the debt has gotten so bad under his watch. He doesn't have the first clue when it comes to the topic of the national debt.
This myth says that the Iraq war and Bush tax cuts were major factors in fueling the national debt. Obama says:
This is utter nonsense. For one thing, Obama strongly supported going to Afghanistan from the start, so by including that war he appears to be taking a jab at himself. The war in Iraq, which he did oppose, was about 3% of total federal spending for the nine years that it lasted. Eliminating it as a factor would not have appreciably changed the debt outlook.
Secondly, although Pres. Bush did cut tax rates, total tax revenue was relatively flat during the Bush years. Federal revenue was $2.215 trillion in 2001, $2.288 trillion in 2008 (inflation adjusted to 2005 dollars). So neither Iraq nor the Bush tax cuts account for much of the debt problem.
The CBO, factcheck, and the treasury dept disagree with you.
The problem under Bush was overall spending, just as it has been during the Obama years. Obama is right about one thing--the recession did cause a drop in tax revenue. But he was wrong about almost everything else. No wonder the debt has gotten so bad under his watch. He doesn't have the first clue when it comes to the topic of the national debt.
Right, Bush cut taxes and then went on a spending spree. This current fiscal woes were predicted back in 2003 by a bunch of economists that said without cuts in spending the tax cuts would burden the US budget. Coupled with the fact that medicare is now paying out more than is taken a deficit was unavoidable.
Right, Bush cut taxes and then went on a spending spree. This current fiscal woes were predicted back in 2003 by a bunch of economists that said without cuts in spending the tax cuts would burden the US budget. Coupled with the fact that medicare is now paying out more than is taken a deficit was unavoidable.
David Letterman asked Pres. Obama about the debt. First of all, note that the prez does not appear to understand the difference between debt and deficit.
Nowhere in the above video did Obama not understand the difference between debt and deficit. At what time in the above video did Obama show that lack of understanding?
Quote:
Letterman specifically references the overall (accumulated) 'debt,' and Obama immediately mixes that up with the annual surplus/deficit. There has not been an overall surplus since the Andrew Jackson admin in the 19th century.
This myth says that the Iraq war and Bush tax cuts were major factors in fueling the national debt. Obama says:
GW Bush's supply side tax cuts gave the richest 1% of Americans $2.5 trillion dollars in tax cuts. And the unneeded Iraq war caused America to move transport ships, aircraft carriers, tanks, helicopters, and huge numbers of US soldiers to Iraq. Bush Tax Cuts After 2002: June 2002 CTJ Analysis
Do you honestly believe we can cut taxes by $2.5 trillion dollars, and not create deficits?
Do you honestly believe we can move massive amounts of military equipment and soldiers to Iraq, and it does not cost money?
Quote:
This is utter nonsense. For one thing, Obama strongly supported going to Afghanistan from the start, so by including that war he appears to be taking a jab at himself. The war in Iraq, which he did oppose, was about 3% of total federal spending for the nine years that it lasted. Eliminating it as a factor would not have appreciably changed the debt outlook.
The Iraq war is going to cost America around $6 trillion dollars, do you believe $6 trillion dollars is trivial federal spending?
Secondly, although Pres. Bush did cut tax rates, total tax revenue was relatively flat during the Bush years. Federal revenue was $2.215 trillion in 2001, $2.288 trillion in 2008 (inflation adjusted to 2005 dollars). So neither Iraq nor the Bush tax cuts account for much of the debt problem.
GW Bush's tax cuts happened in 2001 and 2003, in those years our revenues fell by more dollars than anytime in American history.
Go back to the year 1965 in the above source and notice how spending increases every year. But notice how in the years 2010, 2012, and 2013 government spending goes down.
And in 2010, 2012, and 2013 government spending did not just slow down (it went backwards and lowered), that's why Obama is the smallest government spender since president Eisenhower.
We print money out of thin air to pay for the federal gov't's obligations.
Ward Cleaver complains about the national debt on Leave It to Beaver around 1959-1960.
As long as the rest of the world doesn't start to think the US dollar isn't worth much, we seem to be OK.
It's not a topic discussed much in the media, therefore the average American doesn't question how the government pays its bills.
Interest rates from saved money in the bank won't ever be attractive again, because the gov't. would have to pay so much interest to bond holders.
Trump's tax cuts did boost the economy, but it needs to be tallied how much that generated versus how much revenue was lost by the cuts.
The cuts were good, we should stay competitive with other countries and not keep thousands of loopholes to avoid paying the published rate.
But at least Obama considered the debt to be real and he tried to raise revenue to keep it from spiraling out of control.
Trump has been great for the economy before CoVid19, but he just pretends it doesn't exist.
Maybe he's right and it doesn't. The Fed and Treasury just create money on the computer exchanging it back and forth to appear that it's legit and accounted for.
McConnell had 5-7 years to come up with a better solution than Obamacare, and none of them spent 5 minutes thinking about repeal and replace.
I am against Obamacare too, because throwing more money at the front end to an industry insulated from competition and market forces is why healthcare costs are such a farce and a greedfest.
But McConnell and his ilk just did it out of spite, which is why I hate politics and our country loses ground every day from it former position as the top country.
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