Government Debt

How Large is the National Debt?

As of 12-2020
  • The National Debt as a percentage of the economy has quadrupled to 128% since a low of 31% in 1979
  • At the end of 2020 it stood at over 27.7 trillion dollars
  • That is over $83,000 for every person in the United States
How much debt does the US have? Why is the US in so much debt?

When did we get all this Debt?

As of 12-2020
  • The Debt has increased under Presidents of both parties
  • Since 1950,
  • 58% of the US debt has accumulated under Republican Presidents
  • 42% of the US debt has accumulated under Democratic Presidents
Did the democrats create the debt? Did the republicans create the debt? Debt democrat vs republican? Democratic debt? Republican debt?

How Well has Each President Balanced the Budget?

As of 12-2020
  • Deficit Spending in each administration, as negotiated between Congress and the President, has created the National Debt
  • Reagan – Increased Deficit Spending by 67%
  • Bush – Increased Deficit Spending by 68%
  • Clinton – Reduced Deficit Spending (171%) and created a budget surplus, beginning to lower the Debt
  • G.W. Bush – Increased Deficit Spending by 2.5 times, leading into the Great Recession
  • Obama – Reduced Deficit Spending following the Great Recession, but still up by 13% at the end of 8 years
  • Trump – Quadrupled Deficit Spending through 2020.

  • Over the past 40 years, Republican Presidents have consistently increased deficit spending, while it has decreased under Democratic Presidents.
Deficit spending by president. Who had the highest deficit? Which president created the debt?

Do we have Debt Because we Spend too Much?

As of 12-2020
  • Average Spending is around 20% of GDP
  • Spending increased during the Reagan/Bush years, and under GW Bush for defense
  • Spending decreased under Clinton, producing a balanced budget
  • There were also significant spending increases during the Great Recession under Obama, which declined as the economy improved
  • Spending increased under Trump in 2020 to its highest point since World War II, with significiant increases in response to economic challenges due to COVID-19
Is the debt due to spending? Does the government spend too much? Which presidents spent too much?

Do we have Debt Because we Don't get Enough Revenue?

As of 12-2020
  • The US gets only about 17% of GDP on average in Revenue, compared to 20% of GDP in Spending
  • Drops in Revenue have followed most of the tax cuts of Reagan, GW Bush and Trump, significantly increasing the National Debt

  • Tax Cuts do not pay for themselves
  • Tax increases on the wealthy in the early 90’s led to increases in Revenue and a balanced budget
Do tax cuts pay for themselves? Do tax cuts increase revenue? Do tax cuts work? Do tax cuts add to the deficit? Do tax cuts create debt? Are tax increases harmful?

Debt Bottom Line

As of 12-2020
The US Debt has grown significantly since 1980 The major reasons for the US Debt are:
  • Republican led tax cuts that created significant drops in federal revenue
  • The Great Recession caused by lack of regulation in the financial markets, creating significant unemployment
  • Increases in spending for:
  • Defense (Regan, Bush, HW Bush)
  • Unemployment and stimulus payments during the Great Recession (HW Bush/Obama)
  • Unemployment and stimulus payments during the COVID-19 pandemic (Trump)
  • Growing costs for Social Security, Medicare and Medicaid