U.S. National Debt$12.7 Trillion Added to the Debt Over the Last Decade

Additional debt held by the government(e.g. debt owed to Social Security Trust Fund)

Total Debt-$14 trillion

Debt Held by the Public (end 2011) -$10.4 trillion

–$700B - Debt issued for government financing (e.g. student loans)

–$3.6T - Economic and technical changes (e.g. lower tax income due to recession)

BUSH POLICIES(2001-2008)

–$3T - Bush tax cuts

–$300B - Unfunded prescription drug benefits for seniors –$200B - 2008 Stimulus, including TARP

–$1.7T - Domestic and defense spending (e.g. education, veterans benefits)

–$1.4T - Wars in Afghanistan and Iraq

–$400B - Additional mandatory policies (e.g. Farm Bill)

-$7 trillion

SURPLUS +

DEBT -

At the end of the Clinton Administration in 2001, the United States was on track to pay o� its debt and accumulate +$2.3 trillion in savings by 2011.

OBAMA POLICIES(2009-2011)

–$800B - Recovery Act–$250B - December 2010 middle class tax cut deal

–$400B - One-time emergency costs and investments* (ex: small business bill, HIRE Act, education investments, and Census)

-$1.4 trillion

FINANCE DEBT-$700 billion

ECON & TECHNICAL-$3.6 trillion

The past ten years drastically changed that, beginning with President Bush’s tax cuts and ending with a 2011 total public debt of -$10.4 trillion—a swing of -$12.7 trillion.

Analysis based on CBO data.

Reduces the deficit by —$4 trillion and cuts domestic spending to the lowest level since Dwight Eisenhower

A bipartisan plan, with broad national popular support

No tax increase for the 98% of Americans who make under $250,000

Doesn’t ask the wealthiest Americans or biggest corporations to contribute anything at all

Relies only on deep cuts, including education, clean energy and medical research

Means senior citizens pay more for Medicare to keep tax breaks in place for corporate jet owners and oil companies

A BALANCED APPROACH A CUTS-ONLY APPROACH

$0

DEBT CEILING INCREASES BY PRESIDENT

“Would you rather reduce deficits and interest rates by raising revenue �om those who are not now paying their fair share? Or would you rather accept larger budget deficits, higher interest rates, and higher unemployment?” –President Ronald Reagan

Kennedy: 4 times for a total increase of 5%

Johnson: 7 times for a total increase of 18%

Nixon: 9 times for a total increase of 36%

Ford: 5 times for a total increase of 41%

Carter: 9 times for a total increase of 59%

Reagan: 18 times for a total increase of 199%

George H.W. Bush: 9 times for a total increase of 48%

Clinton: 4 times for a total increase of 44%

George W. Bush: 7 times for a total increase of 90%

Obama: 3 times for a total increase of 26%.

WhiteHouse.govCreated: Tuesday, July 26, 2011

Addressing the Debt Limit

For the last decade, we have spent more money than we take in. In the year 2000, the government had a budget surplus. But instead of using it to pay o� our debt, the money was spent on trillions of dollars in new tax cuts, while two wars and an expensive prescription drug program were simply added to our nation’s credit card…. To make matters worse, the recession meant that there was less money coming in, and it required us to spend even more – on tax cuts for middle-class families to spur the economy; on unemployment insurance; on aid to states so we could prevent more teachers and firefighters and police o�cers �om being laid o�.

Because neither party is blameless for the decisions that led to this problem, both parties have a responsibility to solve it.

– President Obama

… raising the debt ceiling does not allow Congress to spend more money. It simply gives our country the ability to pay the bills that Congress has already racked up. In the past, raising the debt ceiling was routine.… Unfortunately, for the past several weeks, the House of Representatives has essentially said that they will not vote to raise the debt ceiling unless the rest of us agree to their cuts-only approach. And if they follow through on that threat, it would be the first time in history that the United States of America defaults on the debt that we owe.

– President Obama

* These up-front costs are paid for by long-run savings that aren’t reflected in the above since these savings occur after 2011.

-$12.7 trillion

The di�erence between the savings onceprojected for 2011 and the actual debt is