Obama: Unpatriotic to run up national debt

Obama says that running up the national debt is irresponsible and unpatriotic.

Obama says raising the debt ceiling does not increase the national debt.

Chart showing debt ceiling increases…

US_Public_Debt_Ceiling_1981-2010

Chart showing national debt over same time period…

usgs_line

 

Visualization of National Debt.

http://demonocracy.info/infographics/usa/us_debt/us_debt.html

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4 thoughts on “Obama: Unpatriotic to run up national debt

  1. You’re still confusing cause and effect. Spending raises the national debt. Raising the debt ceiling is voting to extend the credit limit to pay for spending that has already occurred. It doesn’t cause the debt. And two concurrent facts do not prove a causal relationship.

  2. Actually, the national debt cannot rise unless the debt ceiling is raised. The debt ceiling represents a legal limit on the amount the federal government can owe. What causes the amount that the government owes to rise is borrowing – borrowing can come in the form of loans from other governments, the national bank, or the sale of bonds. The federal government borrows each year the difference between what it spends in total and what it generates through taxes. This difference is known as a deficit. The cumulative annual deficit of the US federal government now stands at 16.969 billion (nearly 17 Trillion).

    Now there are two ways to decrease this massive debt. One way is to increase revenue to generate more than is required by government and pay the remaining one the national debt. The second is to slash government spending to the point that current revenue covers expenses and any remaining money can be put toward the national debt, or at least the interest payments. Both of the scenarios would not require an increase in the debt ceiling and could conceivably work to pay down the outstanding debt racked up over the course of the nation’s history. However, I doubt that either would do the trick given the massive debt we are currently under. This will undoubtedly span far into the future, effecting generations to come in a most negative way.

    I favor the second approach since, as I understand it, increasing taxes will reduce the amount of capital the market has to invest in creating new jobs which means there will be less tax revenue in the future – further aggravating the situation. Also, selling bonds to raise revenue constitutes future debt. Since the point is to get out of debt and every bond represents new debt, you’ll never sell enough bonds to get out of debt.

    The president’s comments about the debt ceiling are ridiculous. Yes, raising the debt limit in and of itself does not add to the national debt. But just like adding fuel to a car makes it possible to drive more, raising the debt ceiling makes it possible for government to borrow more. The correlation cannot be dismissed. His argument is shady at best, outright misleading at worst.

  3. There’s a direct way that failing to raise the debt ceiling does increase national debt. It causes default, which leads to a credit downgrade, which makes the money which must be borrowed to service already incurred debt, and what must be borrowed to fulfill the government’s many contractual obligations, more expensive.

    I don’t disagree that all the major players in this avoidable shutdown have been deceitful. Obama’s certainly not alone in misleading. Boehner says he hasn’t got the votes to pass a clean CR, but there are enough House Republicans on record to pass it already. Tea Party members say this wasn’t planned, but are on record months ago detailing this exact scenario and admitting planning it immediately after the 2012 election result, with Koch Brothers backing. Everyone’s lying to support their own goals.

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