Election 2012 - Are We Better Off (Part 2)

The Presidential election is getting ever so close and with less than a week to go many people are still debating on who to vote for.  Last week we examined the unemployment rates to help determine whether we are better off now or 4 years ago?  The answer was we are the same, but the projected trends show improvement in the future under current President Barack Obama.  Today, I would like to take a look at what may be our countries biggest problem, our national debt.  Before we dive head first into our pool of debt, here is a quick history.  The U.S. Department of the Treasury began reporting debt in 1790.  At that time, the U.S. debt was recorded at $71,060,508.50.  A drop in the bucket compared to today's numbers.  Gross Federal Debt is defined as the total debt owed by the United States federal government. It comprises “Debt Held by Public”, including foreign governments, debt held by federal government accounts such as IOUs owed to the Social Security trust fund, and “Debt held by Federal Reserve,” debt bought by the Federal Reserve System as part of the monetary base.  Now that you are scratching your heads, get ready for more. 

Andrew Jackson

In early 1835, the debt of the United States hit its all time low coming in at $33,733.05.  The president at that time was Democrat-Republican Andrew Jackson.  See, both parties did work together!  During this year, Jackson would pay off the entire U.S.debt, the only time in our history this has happened.  Then the depression hit and the debt multiplied 10 fold.  The U.S. national debt began the 20th century at what then was a staggering $2,136,961,091.67.  Year after year the national debt increased until it hit the trillion dollar mark in 1982. In that year, then President Ronald Reagan amassed $1,142,034,000,000.000 in national debt.  Since that time, the U.S. national debt has NEVER gone below the trillion dollar mark.  In 2010 under President Obama, the debt hit a record high coming in at a staggering $13,561,623,030,891.79.   

Now that you are up to speed on the national debt history, are we better off now than we were 4 years ago?  In 2009, when President Obama took office, the national debt was at $10,024,724,896,912.49.  At that time it was an all time high.  In 2001, George W. Bush inherited a national debt of $5,807,463,412,200.06.  All 8 miserable years of the "W" administration saw the nation debt rise by close to $600 billion each year.  When Bush left office, he had doubled the national debt in just 8 years mostly due to 2 wars and borrowing from other countries such as China.  Under current President Obama, the national debt has continued to escalate at an even higher rate.  The national debt has risen on an average of about $2 trillion each year.  A very alarming trend that has led to the U.S. losing its top notch credit rating in the world along with the devaluing of the American dollar. 

So, are we better off now than we were 4 years ago.  The answer is a resounding NO!  We are in deep crap when it comes to the national debt.  We continue to spend money that we either borrow from China or India or just simply don't have.  According to a study done by Brown University, the wars in the Middle East have cost the U.S. between $3.2 and $4.0 trillion.  Now that we are out of Iraq and withdrawing from Afghanistan, this debt burden will end which should help.  Both President Obama and Mitt Romney have plans to stop the bleeding.  Which plan will work?  Who the hell knows.  The national debt is at a crisis level and difficult decisions must be made.  Only you can make the choice when you go to the polls.                                  

All facts are recorded at www.usgovernmentspending.com and www.treasurydirect.gov.