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Monday, June 6, 2011

Dangerous Intersection: Ronald Reagan and the national debt

Erich Vieth June 6, 2011


"As of the writing of this post, the national debt is some $14.34 trillion and counting. The facts don’t lie; Republicans under Reagan, Bush I and Bush II added about $11 trillion to our national debt since 1980.
Now, however, Republicans want to tie raising the debt ceiling to spending cuts. Now, Republicans want more tax breaks for corporations and the ultra-rich and tell us that any tax increase is off the table. Now, Republicans want to destroy Medicare by replacing it with a fixed voucher that buys what little coverage for seniors at whatever price insurers want to charge."
Current US national debt
"The Bush administration, supported by the Federal Reserve and congress, went on a spending binge after 2001 to pull the economy out of its tailspin after the stock market crash.  
The national debt was $5.5 trillion in 2001 when Bush took office and will be $10 trillion when he leaves.  
After the 2001 market crash, he will have doubled the US national debt in 8 years to prop up the financial markets.  
The money was spent on his Iraq war, tax cut programs and any other pork project congress could dream up.  No spending bills were vetoed.  
Loan standards were dramatically loosened and consumers were induced to borrow money and spend it.  This could only happen with the Federal Reserve's approval. Thus, the subprime loan mess is the direct result of US government policy."

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