“The Way I See It” is an attempt by the guest columnist to enlighten readers on a subject, as he views it, and does not necessarily reflect the views of this publication. Comments on this article may be addressed to: Dolphin Talk, P.O. Box 777, Port O’Connor, TX 77982; Email: dolphin1@tisd.net

Understanding “Obamanomics” Part I
Federal Debt, Gross Domestic Product, Total Government Spending, & Revenue

I am not a trained mathematician or one of those propagandists that passes as “an economist”. The numbers are so large as to be incomprehensible, must be rounded off for sake of space, are constantly changing, and are frightening when reduced to what the individual taxpayers portion. The trend over the last decade, especially over the past 3 years, is terrifying! And future projections are WORSE!
The National Debt is the Federal Debt as it stands at time stated, does not include State and Local Government debt or any “Unfunded Liabilities”- Government promises to pay for programs such as Social Security, Medicare, retirements, or others.

Gross Domestic Product is the value of the total production of goods and services of the entire US economy.

Total Government Spending is State and Local government spending added to Federal spending. These are the best estimates and projections I can find, but Government agencies seldom tell the whole truth if they can hide it.

Total Revenue is the total tax load, Federal, State, and Local.

Numbers quoted are for June 18th of the year stated.

According to US Debt Clock, at this time in 2000 the National Debt was $5.72 trillion, and increased to $7.28 trillion in 2004. This was an increase of $1.56 trillion or 27.3% in 4 years or 6.8% average annual increase. This is bad, but was the time of 9/11 attack, the Afghanistan war, and the invasion of Iraq. The individual portion of the Federal debt increased from $20,000 per citizen to $24,800. The load per TAXPAYER increased from $55,000 to approx $71,300.

From 2004-2008 the Debt increased $2.63 trillion to $9.91 trillion or 36.1% for 4 years or 9%/yr. The average increase of 32% over the 2000-2004 increase. This increase of the rate of debt creation should be alarming, but not to Congress. By 2008 the citizen’s share was $32,600 and the Taxpayer’s $91,700.

From this date in 2008 to the present the Debt increased $4.53 trillion in just 3 years (4 year equivalent $6.04 trillion) to $14.44 trillion or 45.7% in 3 years for an average annual rate of increase of 15.2%! This is a 69% increase in the rate debt creation over the 9% average of 2004-2008, or 216% of the rate of debt creation IN 3 YEARS!! 2 1/2 years of Obamanomics on top of the Democrats’ take-over of Congress in 2006. The citizen’s portion of the Debt is now $46,300 each and the poor Taxpayer’s is $129,400! The Beltway Buffoons are fighting tooth and nail to stop any cuts in spending, even the tiny cuts asked for by the mostly gutless Republican leadership. These people are like a gaggle of 13 year old girls at the Mall with unlimited credit cards!

When compared with the Gross Domestic Product, in 2000 the Debt was 60.57% of a $9.44 trillion GDP, in 2004 Debt was 64.35% of a $11.31 trillion GDP, in 2008 Debt was 71.26% of a $13.91 trillion GDP, and today is 97.26% of a $14.75 GDP. This is a 60.6% increase in the percentage of Debt/GNP since this date of 2000 with no real sign of slowing. The rate of growth of the GDP has slowed, and if honestly corrected for inflation is probably a negative (shrinking). I have no “official data” to argue that, only observed increases in the costs of necessities.

Revenue, or taxes collected – Federal, State, & local Nationwide – was 37.40% of GDP in 2000, 33.97% GDP in 2004, 36.07% in 2008, but has fallen to 30.55% today. Unemployed people don’t pay taxes, underemployed and scared people don’t spend as much money and thereby pay less taxes. The tax base is shrinking, the economy (GDP) is shrinking, but “the party never ends” in the District of Corruption!
Total Government Spending is ever increasing, though. In 2000- $3.42 trillion or 36.23% of GDP, 2004- $4.43 trillion or 39.16% of GDP, 2008- $5.59 trillion or 40.59% and today, in our slowly imploding economy, increasing to $6.88 trillion or 46.61%. At the current rate, by the the time the next President of the United States is sworn in January 2013, 50% of every dollar produced in the United States will be consumed and spent by Government! If they tried to directly tax this shrinking economy, it would probably fail and there would be a revolution. Runaway Government spending is the problem. They are borrowing “money” and creating debt to buy votes from irresponsible people.

See www.usdebtclock.org/ for more info. Also check the Debt Clock Time Machine for Congressional Budget Office projections for 2015 – based on info furnished by Congress (wishes & lies) and the projections for 2015 based on actual rates. Better put a seat-belt on your chair and/or have a couple ‘Adult Beverages’!!