U.S. National Debt

U.S. National Debt THE WHITE HOUSE $12.7 Trillion Added to the Debt Over the Last Decade At the end of the Clinton Administration in 2001, the United States was on track to pay off its debt and accumulate +$2.3 trillion in savings by 2011. The past ten years drastically changed that, beginning with President Bush's tax cuts and ending with a 2011 total public debt of -$10.4 trillion-a swing of -$12.7 trillion. -$3.6T - Economic and technical changes (e.g. lower tax income due to recession) SUBPLUS- $0 ECON & TECHNICAL DEaT -$3.6 trillion -$700B - Debt issued for government financing (e.g. student loans) FINANCE DEBT -$700 billion -$400B - One-time emergency costs and investments* (ex: small business bill, HIŘE Act, education investments, and Census) OBAMA POLICIES (2009-2011) -$1.4 trillion -$250B - December 2010 middle class tax cut deal -$800B - Recovery Act -$400B - Additional mandatory policies (e.g. Farm Bill) -$1.4T - Wars in Afghanistan and Iraq The difference between the savings once projected for 2011 and the actual debt is -$12.7 trillion -$1.7T - Domestic and defense spending (e.g. education, veterans benefits) BUSH POLICIES (2001-2008) -$200B - 2008 Stimulus, inlcuding TARP -$7 trillion -$300B - Unfunded prescription drug benefits for seniors -$3T - Bush tax cuts Debt Held by the Public (end 2011) -$10.4 trillion Additional debt held by the government (e.g. debt owed to Social Security Trust Fund) Total Debt -$14 trillion * These up-front costs are paid for by long-run savings that aren't reflected in the above since these savings occur after 2011. Analysis based on CBO data. For the last decade, we have spent more money than we take in. In the year 2000, the government had a budget surplus. But instead of using it to pay off our debt, the money was spent on trillions of dollars in new tax cuts, while two wars and an expensive prescription drug program were simply added to our nation's credit card. To make matters worse, the recession meant that there was less money coming in, and it required us to spend even more - on tax cuts for middle-class families to spur the economy; on unemployment insurance; on aid to states so we could prevent more teachers and firefighters and police officers from being laid off. Because neither party is blameless for the decisions that led to this problem, both parties have a responsibility to solve it. - President Obama Created: Tuesday, July 26, 201I WhiteHouse.gov