Friday, October 03, 2008

Bailout raises the U.S. national debt to $11.315 trillion

Last July, President Bush signed legislation that raised the debt ceiling to $10.615 trillion.

Today he signed the financial bailout legislation passed by the Senate last night that raises the debt ceiling to $11.315 trillion.

Under the Bush Administration, the gross national debt as a percentage of the gross domestic product has hit a 50-year high. The following chart illustrates the trend nicely.

Bush did three things to skyrocket the debt from $5.7 trillion to $10 trillion:
1. He lowered taxes on the rich (by far the biggest item).
2. He invaded Iraq and Afghan-Pakistan.
3. He did not regulate an out-of-control Wall Street.


1 comment:

Grant Montgomery said...

For obvious reasons, Politicians avoid referring to the $10 - 11 Trillion Debt. When politicians (of both parties) talk about the debt, they simply talk about the "debt held by the public" or the "national debt," and they call its yearly increase the "deficit."

In fact, over $2 trillion of what they call "held by the public" is actually held by foreign interests, while 100% of what is owed by Social Security is owed to Americans.

But this way of talking makes it sound like the money put into Social Security and into government and military pension funds, all of which is borrowed by the General Fund, is not owed to the public. But it is.