Where The Unexpectedly Huge National Debt Came From

As we’ve seen before, in the year 2000 the Congressional Budget Office, which does official economic forecasting for Congress, predicted that by 2012 the national debt would be wiped out. What actually happened is that the debt increased five times over. To explain how that once-likely prediction became just another unrealistic dream, the left-leaning Center For American Progress broke down the numbers in a short video; of the 12 trillion dollar difference between projected and actual revenue:

  • 4.7 trillion (40%) went to extra Bush spending (wars in Iraq and Afghanistan, increased Medicare coverage, increased domestic security, debt repayment)
  • 3.3 trillion (26%) disappeared due to two economic downturns — the Internet bubble in 2001 and the real estate bubble in 2008
  • 2.3 trillion (20%) went to pay for Bush tax cuts
  • 1 trillion (8%) went to extra Obama spending (continuation of Bush tax cuts, new Obama tax cuts and other policies)
  • 0.7 trillion (6%) went to the 2008 stimulus to bail the country out

See also:

From YouTube, via FAIL Blog

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