Increasing the Federal Debt
We all remember our elementary class president’s promise to put soda in the drinking fountains, and likewise, we remember each United States President’s promise to lower the federal debt.
Once a person takes office, though, these promises seem as likely as Donald Trump getting an attractive haircut. With thousands of Americans filing Chapter 7 bankruptcy every year, debt is on everyone’s mind.
From 1977 until now, can you guess which president succeeded in lowering the federal debt, and who raised it the most? Also, find out what the projected debt for 2010 will look like as a percentage of the GDP.
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Increasing the Federal Debt
Each year, the president begins the federal budget setting process by submitting a budget request to Congress.
Because of this, the president must often shoulder the blame for an increased national debt.
Each president inherits a different economy, and deals with different international crises.
Total Percent Debt Increase plus Events and Policies During Presidency
- Jimmy Carter: Debt -0.4%. Increased taxes, high inflation, high unemployment
- Ronald Reagan: Debt +110%. Increased defense spending, lowered personal income taxes, major foreign borrowing, increased spending on drug war
- George H. W. Bush: Debt +33%. Increased taxes, mild recession, increased unemployment benefits, Gulf war
- Bill Clinton: Debt +13%. Increased taxes for the rich, reduced spending, low unemployment
- George W. Bush: Debt +76%. Cut taxes, war on terrorism, major recession, increased Medicare spending, major bank bailout spending
- Barack Obama: Debt +19%. War on terrorism, major recession, major economic stimulus spending, increased healthcare spending.
Changes Debt as a Percent of GDP
- Carter (1977-1981): 35.8% to 32.5%
- Reagan (1981-1989): 32.5% to 53.1%
- Bush (1989-1993): 53.1% to 66.1%
- Clinton (1993-2001): 66.1% to 56.4%
- W. Bush (2001-2009): 56.4% to 84.2%
- Obama (2009-present): 84.2% to 93.2%
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