Research Briefing

The Undisputed Debt King Takes The Balance On The Nation’s Credit Card To Unprecedented Heights

THE NATIONAL DEBT HAS HIT THE $15 TRILLION MARK

The National Debt Is Now $15.0 Trillion Dollars. (US Department Of The Treasury, TreasuryDirect.gov, Accessed 11/16/11)

Since President Obama Took Office, The National Debt Has Risen $4.4 Trillion, An Increase Of Over 41 Percent.. (US Department Of The Treasury, TreasuryDirect.gov, Accessed 11/16/11)

• Under Obama’s Watch, Each Citizen’s Share Of The National Debt Has Risen $14,273.02 To A Total Of $48,692.55.  (US Department Of The Treasury, TreasuryDirect.gov, Accessed 11/16/11)

HOW MUCH IS $15 TRILLION?

$15 Trillion Is More Than The Value Of All The Goods And Services Produced In The United States Last Year. (“Gross Domestic Product,” Bureau Of Economic Analysis, BEA.gov, Accessed 11/3/11)

15 Trillion One-Dollar Bills Would Wrap Around The Earth’s Equator Over 58,000 Times. (“Earth: Facts & Figures,” NASA, Accessed 11/3/11)

In FY2010, The Bureau Of Engraving And Printing Produced $974 Million Worth Of Currency. At That Rate, It Would Take 15,400 Years To Print $15 Trillion. (“Annual Production Figures,” Bureau Of Engraving And Printing, Accessed 11/3/11)

• It Would Take The Average Household Over 300 Million Years To Pay Off The National Debt On Their Own. (Press Release, “Income, Poverty and Health Insurance Coverage in the United States: 2010,” US Census Bureau, 9/13/11)

To Pay Off $15 Trillion In Debt, The Federal Government Would Have To Devote Every Dollar Of Revenue To Paying Off The Debt For 6.5 Years. (“Monthly Budget Review,” Congressional Budget Office, 10/7/11)

UNDER OBAMA, THE NATIONAL DEBT HAS SKYROCKETED

Politifact: Barack Obama Is “The Undisputed Debt King Of The Last Five Presidents.” “So by this measurement -- potentially a more important one -- Obama is the undisputed debt king of the last five presidents, rather than the guy who added a piddling amount to the debt, as Pelosi’s chart suggested.” (“Nancy Pelosi Post Questionable Chart On Debt Accumulation By Barack Obama, Predecessors,” Politifact, 5/19/11)

• Congressional Budget Office: “The Amount Of Federal Debt Held By The Public Has Skyrocketed In The Past Few Years …” “The amount of federal debt held by the public has skyrocketed in the past few years, rising from 40 percent of GDP at the end of 2008 to reach an estimated 67 percent by the end of this year.” (“The Budget And Economic Outlook: An Update,” Congressional Budget Office, 8/24/11)

The Washington Post’s Fact Checker: Obama’s Record On The Debt Looks “Pretty Bad For Obama After Not Even Three Years In Office.” “If the chart were recast to show how much the debt went up as a percentage of GDP, it would look pretty bad for Obama after not even three years in office.” (Glenn Kessler, “A Bogus Chart On Obama And The Debt Gets A New Lease On Life,” The Washington Post's "The Fact Checker", 9/29/11)

• Fact Checker: “[Obama’s] Record On The Growth Of National Debt Is The Worst Of Recent Presidents.” “An improvement in the nation’s economy would boost the gross domestic product, which would certainly begin to reduce his ratio. But the fact remains that under basic economic measures, not phony ones, his record on the growth of the national debt is the worst of recent presidents.” (Glenn Kessler, “A Bogus Chart On Obama And The Debt Gets A New Lease On Life,” The Washington Post's "The Fact Checker", 9/29/11)

Obama Is Responsible For “The Most Rapid Increase In The Debt Under Any U.S. President.” “The debt was $10.626 trillion on the day Mr. Obama took office. The latest calculation from Treasury shows the debt has now hit $14.639 trillion. It's the most rapid increase in the debt under any U.S. president.” (Mark Knoller, “National Debt Has Increased $4 Trillion Under Obama,” CBS News, 8/22/11)

• By Next Election Obama Will Have Added “$22,500 In New Debt For Every Man, Woman And Child In The Nation — Enough To Pay For A New Toyota Corolla For Each Of Them.” “By the time the next election rolls around, the government will have taken on almost $7 trillion in debt under Obama. It’s hard to explain away a number so big. Republicans will find clever ways to make that number more digestible, including handy stats such as reducing that amount to $22,500 in new debt for every man, woman and child in the nation — enough to pay for a new Toyota Corolla for each of them.” (Jim VandeHei and Mike Allen, “President Obama’s Big Drags,” Politico, 8/4/11)

OBAMA HAS REPEATEDLY CHOSEN NOT TO TAKE THE LEAD ON FISCAL DISCIPLINE

Obama Broke His Promise To Cut The Deficit In Half

PROMISE: Obama Pledged To Cut The Deficit In Half By The End Of His First Term. OBAMA: “And that's why today I'm pledging to cut the deficit we inherited by half by the end of my first term in office.” (President Barack Obama, Remarks At The Fiscal Responsibility Summit, Washington, D.C., 2/23/09)

• “President Barack Obama Plans To Cut The U.S. Budget Deficit To $533 Billion By The End Of His First Term …” “President Barack Obama plans to cut the U.S. budget deficit to $533 billion by the end of his first term by increasing taxes on the wealthy and cutting spending for the war in Iraq, according to an administration official. Obama wants to reduce the deficit because he’s concerned that over time, federal borrowing will make it harder for the U.S. economy to grow and create jobs, said the official, speaking on the condition of anonymity.” (Hans Nichols, “Obama Plans To Reduce Budget Deficit To $533 Billion By 2013,” Bloomberg, 2/21/09)

FAIL: Even If Every Part Of Obama’s Deficit Reduction Proposal Was Enacted, The Deficit At The End Of His First Term Would Still Be $1.33 Trillion, Over Double What He Promised. (“The President’s Plan For Economic Growth And Deficit Reduction; Table S-3,” Office Of Management And Budget, 9/19/11)

• Treasury Secretary Timothy Geithner Said Even If Congress Enacted The President’s Budget “We Would Still Be Left With A Very Large Interest Burden And Unsustainable Obligations Over Time.” GEITHNER: ““You’re absolutely right that with the president’s plan, even if Congress were to enact it, and even if Congress were to hold to it and reduce those deficits to three percent of GDP over the next five years, we would still be left with a very large interest burden and unsustainable obligations over time.” (Treasury Secretary Timothy Geithner, Remarks Before Senate Budget Committee, Washington, D.C., 2/17/11)

Instead Obama Racked Up Three Record Deficits

FY2011’s Budget Deficit Was The Third Highest In The Last 65 Years, Behind Obama’s Previous Two Record Deficits. “At 8.5 percent of gross domestic product (GDP), the $1.3 trillion budget deficit that the Congressional Budget Office (CBO) projects for 2011 will be the third-largest shortfall in the past 65 years (exceeded only by the deficits of the preceding two years).” (“The Budget And Economic Outlook: An Update,” Congressional Budget Office, 8/24/11)

• FY2009: The Federal Budget Deficit Was $1.416 Trillion, The Highest In U.S. History. (“Monthly Budget Review: Fiscal Year 2010,” Congressional Budget Office, 10/7/10)
• FY2011: The Federal Budget Deficit Was $1.299 Trillion, The Second Highest In U.S. History. (“Monthly Budget Review: Fiscal Year 2011,” Congressional Budget Office, 10/7/11)
• FY2010: The Federal Budget Deficit Was $1.291 Trillion, The Third Highest In U.S. History. (“Monthly Budget Review: Fiscal Year 2010,” Congressional Budget Office, 10/7/10)

Obama Ignored His Own Fiscal Commission

Obama Promised That “Once The Bipartisan Fiscal Commission Finishes Its Work, I Will Spend The Next Year Making The Tough Choices Necessary To Further Reduce Our Deficit And Lower Our Debt.” OBAMA: “And once the bipartisan fiscal commission finishes its work, I’ll spend the next year making the tough choices necessary to further reduce our deficit and lower our debt -- whether I get help from the other side or not.”  (President Barack Obama, Remarks At The Cuyahoga Community College West Campus, Parma, OH, 9/8/10)

• President Obama Said His Fiscal Commission “Can't Be One Of Those Washington Gimmicks That Lets Us Pretend We Solved A Problem.” OBAMA: “That's why I've called for a bipartisan, Fiscal Commission, modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad. This can't be one of those Washington gimmicks that lets us pretend we solved a problem. The Commission will have to provide a specific set of solutions by a certain deadline.” (President Barack Obama, Address Before A Joint Session Of Congress On The State Of The Union, 1/27/10)

Obama Did Not Opt “For The Bold, Comprehensive Approach To Reining In The Fast-Growing Federal Debt” That His Fiscal Commission Recommended When He Crafted His Budget.  "With the budget he is to unveil Monday, President Obama has not opted for the bold, comprehensive approach to reining in the fast-growing federal debt that his own fiscal commission has said is needed, now."  (Jackie Calmes, "A Cautious Approach Seeking Bipartisan Appeal," The New York Times, 2/13/11)

• After Shelving Their Recommendations, NBC’s Chuck Todd Asked The President “What Was The Point Of The Fiscal Commission?” (President Barack Obama, The President’s News Conference, Washington, D.C., 2/16/11)

Rep. Steny Hoyer (D-MD): “I Think, In Retrospect, The President Probably Should Have Embraced [Bowles-Simpson].” (KSNV’s “Face To Face,” 8/30/11)

Obama’s Budget Proposed Record Spending And Masked It With Phony Math

Given The Chance To Show Leadership With His Budget, Obama "Chose Instead To Duck" Behind "The Sort Of Budgetary Gimmicks He Once Derided." "Having been given the chance, the cover and the push by the fiscal commission he created to take bold steps to raise revenue and curb entitlement spending, President Obama, in his fiscal 2012 budget proposal, chose instead to duck. To duck, and to mask some of the ducking with the sort of budgetary gimmicks he once derided."  (Editorial, "President Obama's Budget Kicks The Hard Choices Further Down The Road," The Washington Post, 2/15/11)

• President Obama’s FY2012 Budget “Declined To Propose Major Changes To Social Security, Medicare Or Medicaid.” “Even as the administration said it wants to reduce the deficit by more than $1 trillion over the next 10 years, it declined to propose major changes to Social Security, Medicare or Medicaid, which combined account for more than 40 percent of federal spending.” (Perry Bacon Jr., “In Third Year, Obama Proposes A More Modest Course,” The Washington Post, 2/14/11)

Obama’s Budget Showed That He “Would Not Take The Lead On Any Aggressive Measure To Eliminate The Nation’s $14 Trillion Debt.” "The plan shows that Obama will not take the lead on any aggressive measure to eliminate the nation's $14 trillion debt. This sets up the Obama administration on a collision course with Republicans, who are calling for serious deficit reduction and spending cuts." (Jake Tapper, "President Obama's Budget And The Pending Budget Fight," ABC News' "Political Pu nch" Blog, 2/14/11)

Obama Would Rather Use Gimmicks Than Actually Control His Binge Spending

The Washington Post: “The Administration’s Claim To Have Come Up With $4 Trillion In Deficit Reduction Is Misleading. The More Accurate Amount Is Barely Half That …” “The administration’s claim to have come up with $4 trillion in deficit reduction is misleading. The more accurate amount is barely half that, including about $1 trillion in domestic and security spending cuts already agreed to as part of the debt ceiling deal, and $1.5 trillion in tax increases on the wealthy.” (Editorial, “In Debt Plan, Mr. Obama Goes ‘Medium’,” The Washington Post, 9/19/11)

• The President Counted $1 Trillion In Savings From Ending The Wars In Afghanistan And Iraq “Already Incorporated In Any Realistic Base Line.” “The administration gives itself credit for another $1 trillion by counting savings — already incorporated in any realistic base line — from winding down military operations in Iraq and Afghanistan. (Editorial, “In Debt Plan, Mr. Obama Goes ‘Medium’,” The Washington Post, 9/19/11)
• Obama Counted $866 Billion Worth Of Tax Hikes As “Savings.” “The administration further pads its results by giving itself credit for $866 billion in ‘savings’ from letting the George W. Bush tax cuts expire for those making more than $250,000 a year.” (Editorial, “In Debt Plan, Mr. Obama Goes ‘Medium’,” The Washington Post, 9/19/11)

If You Remove The Gimmicks From Obama’s Plan “Somewhere Between $1.5-$2 Trillion Worth Of Deficit Reduction Evaporates.” “It's also not really designed to particularly reduce the budget deficit--as Lori Montgomery's piece in the Washington Post makes clear, most of the deficit reduction comes from gimmicky changes in the baseline: assuming that war spending will continue at last year's high levels, and assuming that the Bush tax cuts for the affluent would have been extended indefinitely.  If you take away those two assumptions, somewhere between $1.5-$2 trillion worth of deficit reduction evaporates.” (Megan McArdle, “Obama’s Deficit Reduction: A Campaign Document, Not A Policy Plan,” The Atlantic, 9/20/11)