Is the US deficit falling at the fastest rate in 60 years?

Question

"“At a time when our deficits are falling at the fastest rate in 60 years, we’ve got to decide if we’re going to keep squeezing the middle class,” Mr. Obama said.

Answer 1

It is falling a lot, due to the expanding economy. Expanding means more revenues, exceeding expectations..hard to criticize that..

Answer 2

Perhaps - but then it is still too high and only destined to skyrocket when social security and medicare go seriously into the red (but that looks like it might be later than it seemed it would be just a few years ago). So without more revenue, less spending or some of both things are quite unsustainable.



The middle class promises to social security and medicare are the biggest drain looming (but not currently as both programs are in the both by a slim margin). raising payroll taxes to cover the shortfall will stretch the fairness of the system. So curbing the increase in future benefits is the right way to keep the system solvent - benefits will still increase over what they are today, but just not as much as currently planned.



So, how to help the middle class today? A threat: Threaten the 1% with new taxes on their idle capital. If they don't invest that capital in operational, job-producing enterprises, then start taxing it and distributing the proceeds into job-creating infrasturcture investments (which are badly needed anyway) and human capital investments in the middle class - education, health care, social services.



If the 1% loosens their grip on their hyper concentrated wealth we will all benefit - but the if the last 30 years of failed trickle down economics has taught us anything, it's that they will never do that voluntarily. Insteady they will more and more game the system to protect their concentrated wealth rather than actually use it for anything. In so doing they are literally cooking the goose that laid all of their golden eggs - a robust, thriving, and growing middle class.

Answer 3

One must be careful to understand the terminology.



DEFICIT is the year-to-year amount the government spends over what it brings in.



DEBT is the cumulative amount the government owes and has not paid back from previous years. And even if you don't have a deficit, interest on that debt keeps it rising unless you're actively paying it back... by not running a deficit.



For example, Clinton's government (can't give him all the credit, he didn't do it alone) eliminated the Deficit for part of his term, but didn't manage to eliminate all the Debt.



Bush's government ran up a major Deficit to pay for two wars. A large part of the debt increase since is INTEREST on the debt incurred by that deficit.



Now Obama's government has managed to trim the Deficit down quite a bit... but since they're still running a deficit they're not reducing the debt one bit; they're just slowing down the rate of increase somewhat.

Answer 4

Well, when the fiscally responsible party is in charge you tend to see deficit reduction. That's why Obama has cut Bush's deficit in half and Clinton had a surplus.

Answer 5

The public debt is historically high, at more than 72 percent of GDP. Levels were typically below 40 percent since the early 1960s.

Answer 6

no fast enough

we need 2 more wars like the Iraq & the Afghanistan wars

then you can take all your values and shovel

Answer 7

Deficit falling....spending increasing...



Progress!

Answer 8

Sure is,,,,,,,very easy to reduce the deficit in half right after you just quadrupled it.



Now how is that obama National Debt doing?



Real Federal Defict Dwarfs Official Tally

http://www.usatoday.com/news/washington/story/2012-05-18/federal-deficit-accounting/55179748/1



1997-2012 Actual Federal Deficit

http://www.usgovernmentdebt.us/spending_chart_1997_2017USb_G0f



obama Sets Largest Monthly Deficit Spending in History $223 BILLION

http://www.washingtontimes.com/news/2011/mar/7/government-posts-biggest-monthly-deficit-ever/



Deficit Spending Threatens U.S. Credit Rating

http://www.reuters.com/article/2011/04/18/us-ratings-usa-sp-idUSTRE73H2JT20110418



Democrat Senator Berates obamaon Spending

http://cnsnews.com/news/article/freshman-democrat-criticizes-obama-spending



CBO: obama Deficit Spending Will Reach Historic Levels

http://www.washingtonpost.com/wp-dyn/content/story/2009/03/21/ST2009032100105.html?sid=ST2009032100105



obama Has No Federal Budget In Over 4 Years

http://www.politifact.com/wisconsin/statements/2012/feb/02/paul-ryan/democrat-controlled-us-senate-has-gone-nearly-thre/



Real Time Debt Clock

http://www.usdebtclock.org/

Answer 9

With a Democrat in the White House all you see is Tax Increase...

Answer 10

Clinton had surplusses, making that statement nonsensical.

Answer 11

Is that the fly cap shroom?

Psychedelic ain't it...ha ha ha ha ....

Answer 12

@Texas

....even doing simple first grade math I can tell your pic is wrong lol

Answer 13

We are still adding to the debt just not as fast.

Answer 14

Seriously? no way.