A grim new spending record

The CBO recently released the statistics for the 2011 fiscal year that ended on September 30.  The information is not pretty.  Last year, we spent $3,600,000,000,000 and ran a deficit of $1,298,000,000,000. 

The following chart will put the matter in perspective:

1deficit

 In 2011, we spent the largest amount of money we have ever spent as a nation.  Parenthetically,  I would have hated to see what the expenditures would have been had the “evil Republicans” not insisted upon spending cuts.  Steve did an excellent post on this aspect of the CBO’s report, and, if you haven’t read that detailed analysis, I encourage you to do so.

But, several other points come to mind.

Those on the left argue forcefully that the Bush tax cuts contribute greatly to our deficit.  Just looking at the above chart, and, without benefit of any other information, one would conclude that the Bush tax cuts went into effect in 2009 when this country amassed the largest deficit in its  history.  But, as we know, they took effect in 2001.

While “laboring” under the Bush tax cuts, in 2007 our annual budget deficit was only (I hate to use that word in this context) $161 billion.  In only 4 years that annual deficit has increased more than 8 times over.

There is something else, though that we can, and should, take from this chart.  The Keynesian economists that our President has surrounded himself with firmly believe that the government can spend the country’s way out of a recession.  This belief has led us to $10.5 trillion worth of spending in the last 3 fiscal years, and a national debt increase of almost $4 trillion during those years.

Can anyone say our economy is better now than it was in 2007?  Can anyone say that they personally are better off now than they were in 2007?

Isn’t it time that we discarded Keynesian thinking, much as Keynes did shortly before his death, and realize, as President Reagan did, that it is the private sector, not the government that “grows” our way out of a recession?

 

10 replies
  1. ricbee
    ricbee says:

    Actually I am flush,all with government checks. But I’ll probably live to see the price of bread at $10/loaf,gas $10/gal & $20 for the Chinese buffet.

  2. Anybody but Obama
    Anybody but Obama says:

    Its all Bush’s fault. He didn’t spend as much as zero and that makes zero look bad.

    Cain/Gingrich 2012

  3. Marilyn
    Marilyn says:

    It may be? Holoween, but budget trickery is a year round sport on the Hill.?? WSJ-Friday; Olympia Snow and Jeff Sessions have introduced a bill? ” Honest Budget Act” that would end? some of the most egregious acts?of fiscal corruption played out daily.?? I suggeste we all get behind this bill by calling and writing our Senators and Congress Reps., that if they don’t support this bill, we don’t support them.

    • phil
      phil says:

      By now, Courtney, Weatherman Joe and Senator Gaunt know that I don’t, and won’t support them.? They don’t care.? There are enough mindless, brainwashed libs in this state for them to pander to!

      • JBS
        JBS says:

        You are right. Start with the state employees. State employees and those who benefit from the state employee’s contract think that Malloy is great. I have two state employee friends who believe that if the magnanimous contract offered by the democrat regime was rejected, Connecticut would have been crippled!
        They cannot understand that a government job has to be funded by private business. Government doesn’t produce any money, it merely confiscates it.

  4. JBS
    JBS says:

    It would be interesting to know just how much of the debt was incurred giving money to 0000’s democrat friends and how much money was then kicked-back? to the DNC or PACs.(?)
    ?
    So much for transparency!

  5. steve418r
    steve418r says:

    While this administration is selling us down the road, they still claim it’s Bushes fault! There are many people that are receivers of this spending and they want to believe it to be true. We are being set up for the time of when the bill is due and payable. Then what? We cant declare bankruptcy like I have seen so many do. “I am maxing the cards, because I am filing soon” was the mindset when things were good. Now look where we are! The honest consumers are paying that money back through interest and fees, not to mention bailouts.

  6. sammy22
    sammy22 says:

    Are the moneys spent in wars: Afghanistan, Iraq etc. included in the “outlays” above or are they conveniently omitted as they were by the Bush Admin?

  7. Gary J
    Gary J says:

    If those people from OWS get their way, it’ll be going up higher because we O then something for nothing and have to pay down their debt? OMG pay down? What an Idea debt free? Scary huh?

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