The chart to the left is already out of date. It is accurate up to mid-2009 and the end of the Bush fiscal year. As you look at the chart, you will realize that the much maligned Bush spending habit was less than 40% of the GDP. Note: some estimates put Bush spending at 44% of GDP but no higher.
It turns out that at the end of the first fiscal year for Obama, September 31, 2010, government spending will have risen to 53% of GDP and is estimated to be at 90% by 2015. and 103% of GDP by 2020 AD. People need to understand that Bush spending is dwarfed by Obama's and if you still think we are in the economic mess we are in because of Bush, you are either not paying attention or you are so partisan that your rear view has overtaken any forward vision on your part. That is the intellectual way of saying that your head is up your rear end . . . . . just in case you missed the point.
At current spending rates, if we project Bush spending policies out ten years, he is responsible for 3.8 trillion in public national debt. That is more debt than all previous presidents' combined since George Washington. If we project out Obama's debt habit for ten years, at current rates of spending, he will have bought us 24.6 trillion dollars in public debt or somewhere around 120% of our GDP based on a rosy scenario for recovery and a GDP growth rate of between 4 trillion and 6 trillion dollars over the next 10 years. Greece's debt is at 113% and Japan is at 200% of their GDP, respectively. Understand that if the spending rate is cut between now and 2012, AND GDP increases at a 10 year rate of 5 trillion dollars, matching the 2000 to 2009 (inclusively) growth of GDP, our debt will be or could be less than 90% of GDP. Understand that the dollar amount of our debt is one thing and the percentage of our debt versus GDP is something else, and a far more critical factor than mere dollar totals. While Bush is bad mouthed over and over again for spending, his debt-to-GDP held a better ratio than Clinton's !! Look at the chart, facts are facts.
Anyway, the point of all this is to say that as bad as Obama's deficit spending is, it does not mark the death of our nation if we can get folks in office who are responsible and understand a little about economics. Know this, there is a proportionality between government spending and taxation. The higher the percentage of governmental spending, the greater the demand for increased income, either through growth in industry and private sector profitability or through increased taxation. In other words, governmental spending does not foster stimulus. If it could, under Bush, recession would have been impossible.
Obama has increased the size of government from 23% to 51% in one year. Before the 2010 elections, government may be at the 60% level compared to GDP. The size of government under the evil George W Bush was 23%. Before 2010 is over, Obama's government will have tripled in size. None of that is Bush's fault. All of it is the direct result of Obama's capitalized Marxist** policies.
** Note: a "capitalized Marxist" is a government control freak (or group of freaks) who practices the same degree of personal greed he (they) condemns in others. Last year, the Obama's earned a combined income of 5.5 million and failed to pay their fair share of that pool of wealth to the society they want to fundamentally transform --- jds.
keys: capitalized Marxists, GDP, taxation, Clinton, fundamentally transform,
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