Concerning the National Debt in Relation to Gross Domestic Product
To Whom it May Concern:
1} The national debt was NOT reduced to zero during the Clinton Administration.
Rather, it rose approximately $1.6 trillion, from $4.1 trillion to $5.7 trillion. In
as much, Clinton did NOT erase the national debt, as certain people claimed.
2} Nor did the national debt decrease during the Clinton Years. Instead, the rate
of increase slowed-down as the Clinton years progressed. What is significant
about the national debt during the Clinton years is this:
Firstly, Clinton enjoyed budget surpluses from three out of his eight in office,
The National Debt, as a percentage of Gross Domestic Product, dropped by 9%
during Clinton's last term. It went from 65.4% of GDP to 56.4% of GDP. If
Clinton didn't acquiesce to NAFTA, things would have been much better than
what resulted during his administration. He sabotaged his own administration
and all of America, for the years to come. None the less, Clinton did produce
a surplus in terms of the yearly (fiscal) budgets for fiscal years 1998, 1999, and
2000. The numbers respectively are $69, $77, and $46 billion, if you use the
accrual accounting method is coming to the conclusion.
The accrual method simply records expenses at the time the charge/debt occurs,
as opposed to when the expense is paid. In accounting a charge/debt is known
as an account payable. It's regarded as a liability ... a subtraction from wealth of
the company accruing the charge.
In recent presidencies, the Carter administration started with a national debt that
was 35% of GDP and it ended at 32.5%. Under Reagan, it went from Carter's
32.5% to 53.1%. Thus comes more evidence that Reagan was NOT the model
of fiscal responsibility that Fox News and the Republican Party make him out to
be. After all, the national debt ceiling limit was elevated 18 times under Reagan.
Under George Bush I, the national debt's percentage of GDP elevated from 53.1%
to 66.1%. Under Bush II, it went from Clinton's 56.4% to 84.2%.
The Post WWII & Vietnam War Presidencies
At the start of 1945, the national debt was 117% of GDP. The war was still rag-
ing. Then, in 1949, the national debt was reduced to 93% of GDP. In 1953, it
was reduced to 71.4%. Under Ike, it went from 71.4% to 55.2%. Then, under
Kennedy, Johnson, Nixon, Ford, and Carter it went from 55.2% to 35.8%. Thus,
Ronald Reagan and the two George Bushes were responsible for significantly ele-
vating the national debt in relation to the GDP. Under them collectively, the na-
tional debt rose 61.4 percentage points. This illustrates that the Republican Party
is not the party of fiscal responsibility. It's campaign platform has been a lie.
Obama walked aboard a sinking ship. American economic history from 1945 to
1980 shows that there is hope. However, if the Trade Balance Deficit doesn't end
now, then it will soon be over for the entity once known as the United States gov-
ernment, even if it decides to become Argentina the Second. Keep in mind that,
during the 40s, 50s, 60s, and 70s, the manufacturing base was in America, and
not in overseas sweatshops. NAFTA, CAFTA, and any other pending AFTA
must be repealed immediately. Foreign trade in itself is NOT the problem. The
problem is trading with a protectionist dictatorship whose workers cannot afford
to buy American products in the same degree that Americans can afford to buy
the products of the protectionist dictatorship. There must be fair exchange be-
tween trading nations.
The U.S. National Debt
To start, Concerning the Debt-to-GDP Ratio, the United States' National Debt
reach 99.25% of United States' Gross Domestic Product in 2011.
Under Jimmy Carter, the debt went to $1 trillion.
Under Ronald Reagan, it was tripled to $3 trillion.
Under George Bush Sr, it crawled to $4.18 trillion.
Under Bill NAFTA Clinton, it went to $5.72 trillion.
Under George Bush Jr, it skyrocketed to $10.62 trillion.
As of October 2014, under Barack Obama, it's $17.8 trillion.