General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe only two presidents that reduced the deficit in the last 50 years....
liberal N proud
(60,335 posts)Impeach one and sue the other.
Republican claims of being fiscally conservatives is bullshit.
oldandhappy
(6,719 posts)BlueStreak
(8,377 posts)That isn't exactly true. I think it is important that we are vigilant to state our case factually. See this chart
https://research.stlouisfed.org/fred2/graph/?graph_id=187374
There are years when the deficits were reduced under each of the GOP Presidents. It is true that if you compare the beginning to the end of each Presidency (of the current state in Obama's case) only Clinton and Obama have done it on a sustained basis.
Jim Lane
(11,175 posts)Your explanation clarifies it.
Another pedantic qualification: The chart you link to states the deficit as a percentage of GDP. While I think that's a very important measure, most people who speak of deficit reduction would mean that it fell in either current dollars or constant dollars.
I went to cadof.org, the source stated in the OP, in the hope of learning more, but it's a defunct link.
BlueStreak
(8,377 posts)It tells the same story. I think it is more valid to look at it as a % of GDP because that makes the deficit relevant to its era and also eliminates the inflation skew. But some people can relate more easily to "just the numbers". This is adjusted for inflation.
https://research.stlouisfed.org/fred2/graph/?graph_id=187886&category_id=
Notice that there really weren't big deficits during WWII. The nation made a sacrifice because it was committed to the rightness of that war. My how things have changed.
Jim Lane
(11,175 posts)I think the World War II deficit was very big as a percentage of GDP. We came out of the war with total debt of more than 120% of GDP. What's most striking to me is how, after World War II, there was a fairly steady reduction in the total debt as percentage of GDP, regardless of which party was in power, until 1980, when Reagan was elected. The debt was in the ballpark of 35% of GDP when Carter left office. Reagan and Bush 41 brought it over 60%, Clinton trimmed it somewhat, and Shrub took it to over 80%. (It turns out that, when you cut taxes on the rich, increase military spending, and make speeches about the evils of deficit spending, the deficit goes up.)
Chart showing this data by presidential administration:
https://en.wikipedia.org/wiki/History_of_the_United_States_public_debt#mediaviewer/File:US_Federal_Debt_as_Percent_of_GDP_by_President.jpg
BlueStreak
(8,377 posts)The chart now is adjusted for inflation.
And this chart shows the deficit as a percent of GDP during the war period.
https://research.stlouisfed.org/fred2/graph/?graph_id=187986
You are correct. The country carried a huge deficit 1942-1946, but by 1947 had returned to a surplus. That is remarkable, that was a period of quite a lot of Federal spending post-war (the GI bill and many other rebuilding expenses.) But that government spending stimulated a great deal of leverage throughout the economy because it was middle class people who received most of that spending, and in turn put it right back into the economy.
Response to BlueStreak (Reply #3)
BarbaraP This message was self-deleted by its author.
BarbaraP
(2 posts)When Congress passes a budget each year, there is either more revenue than expenditure (surplus) or less revenue than expenditure (deficit). It is an absolute number, not a percentage of GDP. At the link below is every federal budget deficit or surplus ever. Only Clinton's and Obama's budgets had steadily decreasing deficits. (Remember that the US gov't uses a fiscal year and so the 2009 budget started in October 2008, before Obama was president. Same is true of the 1993 budget for Clinton, albeit not as significant because it was lower than the previous year). While about $400B of the increase in the projected deficit for FY2009 was a result of spending by Obama to keep the country from crashing and burning, $600B was the result of decreased tax revenue due to the recession (and, I would argue, the estimated revenue that the Bush Administration and Congress submitted for that year was at best absurdly optimistic and more likely deliberately intended to mislead in light of what many in the government at that time were all but certain was going to happen - read Stress Test by Timothy Geither. They knew it was coming).
The occasional reduction of the deficit during a presidency is not what this is about and anybody who would argue otherwise is misguided. You used the word "sustained" yourself in your post. That is what matters and that is why only those two presidents did in fact reduce the deficit. Not a factual error at all.
http://www.whitehouse.gov/omb/budget/Historicals
Major Hogwash
(17,656 posts)FDR was the best example of that.
President Carter also would have been a 3rd Democratic President to reduce the deficit over his entire term in office, except that he had to deal with all of the turmoil of a war economy that suddenly pulled the plug on the Vietnam War.
I like President Obama a lot, but I love President Carter.