Thursday, September 11, 2008

I Thought it was Democrats that were "Big" Government???

While I knew the budget deficit decreased during Clinton's presidency and did a 180 degree turn under Bush, charting spending / revenues of the U.S. during these times one can see why. What surprised me was that during Clinton's presidency, spending decreased 3.7% from 22.1% to 18.4% of GDP, along with a similar increase in revenues.

On the other hand, the budget deficit under the first 7 years of Bush was caused as much by an increase in spending, as it was from a decrease in revenues. In fact, had interest income not decreased over that time (financing the debt has been done at historically low levels due to historically low Treasury Bill / Note / Bond rates), this number would have been closer to 2.5%.

And this doesn't include the record deficit expected in 2008 BEFORE this weekend's Fannie / Freddie bailout.

Source: CBO