What They Won't Tell You about the National Debt

It came down for 37 year, then the national debt went out-of-control the year the supply siders' took power. Are we trapped between national debt and recession. The patriots of World War II showed us the way.

Category:

Education

Tags:

• national debt
• supply side
• patriotism
• $9 trillion
• US
• national
• debt

[sstoft]

Most conservatives think the Democratic Congress caused Reagan's debt. But (1) the congress was only half Dem, (2) they passed almost exactly the budgets Reagan asked for, (3) most Congressional Republicans voted for every budget, and (4) On the most crucial budget, Reagan got the conservative Southern Dems to switch sides. And the Dems were soundly trounce. That budget did the most damage. The same basic story holds for the other two Presidents.

[SuperZed21]

The chart was a little misleading. Technically government debt has been going up constantly from the beginning of world war I to present. You are however comparing debt to GDP size. So in reality the economy grew faster than debt. You must also realize though they printed their way out of some debt to ensure that the debt didn't grow to fast along with starting up temporary revenue generating schemes such as social security and medicare.

[sstoft]

@SuperZed21 . You're pretty close. But printing money is counted in the gross national debt (the big one that I report and that R's focus on). And social security is one of the least temporary things in government.

[MrDANNYUNDERWOODky]

The privately owned central banks, (fed, world bank, IMF etc), are the source of our debt money system. We need to bring back Lincoln's greenbacks, the creation of money without inital debt attached to it. Instead of banks creating money out of debt, the gov't can create money in the public interest, schools hospitals roads power generation etc. we really need to end fossil fuel electrical generation. the technology is already here the resources need to be made available

[sstoft]

@MrDANNYUNDERWOODky . Not saying we need a war. Agree with you on infrastructure.

The Fed is not really private and does not create greenbacks from debt.

Most money is created by the fractional-reserve banking system and by credit cards etc.

Money is not the problem. A bunch of nuts make up the anti-Fed stuff.

Get a basic econ book if you want to learn how it works, and forget the right-wing (and some left-wing) kooks.

[1morphdude]

Is this a Pro Obama flick?

[sstoft]

@1morphdude No. It's a lesson in basic econ.

[Preluding99]

I believe this video is VALID! It's frustrating with so much political division & misrepresentations hitting the airwaves, it's virtually impossible for most Americans to find truth. Yes, the video did explain how the debt got crazy. I see the point of wealthy folks pay more in taxes overall because they spend more (LESS WE FORGET DEDUCTIONS claimed). Maybe all higher earners & investors can accept lower earnings/dividends, hire people & be part of the solution? Love of $ is root to all evil.

[como651]

The national debt was going down annually ever since the end of WWII. It spiked when Reagan cut taxes on the wealthy in half.  It spiked again when Bush cut taxes and capped the capital gains rates on dividends to just 15% which is a primary source of wealth for the rich and highest tax payers. At the same time entitlement programs were kept in place and grew. It is simple math. You can't spend more than the tax revenue. Either tax more or cut entitlement spending.

[DrunkenGodMode]

the % of gdp timeline is almost identical. I dont think that its just the democrats are responsible for the debt but the difference is the GOP didnt raise taxes to pay for things like the war and welfare programs. if you are going to cut revenues you have to cut spending. Now the Fed shouldnt have a big budget anyways so i do blame the idea of a welfare state and gov agencies. Congress is who spends the money and are both responsible for rise/decline in dept and indirectly of the % of gdp.

[dogfight156]

great vid!

[luizcadu]

Great video!

Since the death of Mao Tse-Tung China has been competing with the US in exporting manufactured products. If you face strong competition, you have to lower your living standards (work harder and earn less), otherwise you'll go bankrupt. To me, since Reagan, the US have been postponing with debt what they'll sonner or later have to do: stop consuming and start producing.