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View Diary: House Democrats remind GOP that Reagan raised debt limit 18 times (67 comments)

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  •  of course today is not 1980 (2+ / 0-)
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    JC from IA, foucaultspendulum

    getting mumber from these 2 sites

    http://www.treasurydirect.gov/...

    http://www.measuringworth.com/...

    in 1980 the debt was about 33% of GDP

    8 years later it had risen to 51% of GDP

    So under 8 years of Reagan, it increased by 18% (33 to 51)

    Under 4 years of Bush I, it increased by 13% (51 to 64 mostly in the 1990-1991 recession)

    Under 8 years of Clinton , it actually decreased by 7 points (64 to 57), even though debt itself increased by 1.6 Trillion as economic growth was strong.

    Under 8 years of Bush II it increased by 13 (57 to 70) with half of that being in 2008

    Debt was slowing increasing as a % of GDP over time, which i think is a bad thing.

    In the last 2 years, it has increased from 70 to 93% of GDP and is fast approaching danger levels according to economists.

    So today the Debt/GDP ratio is increasing faster than is has before when the ratio itself is very high. That leads to the risk of a disaster. Debt growing faster than the economy cannot be sustained indefinitely.

    So i think that it is appropriate that more consideration be given to more increases than was given when our debt levels were far lower.

    If  interest rates were to rise, we could easily see interest on the debt rise by 500 billion Per Year (with only a 5% interest rate).

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