40 posts later and we still don't have responses to the thread starter question about Obama's spending habits. I'll add to my earlier post some additional facts that concern me...
1. National debt is related to GDP. The percentage of debt to GDP is more important to analyzing the danger of carrying that debt then the actual debt itself. So many analysts look at the percentage and who holds the debt to evaluate how dangerous is a debt situation. In 2007, that percentage was in the mid-60% range; many economists project the ratio to exceed 100% within the next 3 years. That means we will have a government that owes more money that it makes. While the information is available through a variety of sources, I liked this one best
. I don't like making the top-20 list for debt ratios - let alone where we'll rate in the next few years.
2. The current administration is applying a federal spending program to raise the GDP to reduce the ratio of debt to GDP. They are not reducing debt, only the percentage of debt to GDP. Again, there are many articles out there, I felt this NY Times article
to be simple enough outlining the concern I share. I am not a fan of spending more to make our bottom line look better; a similar tactic that private businesses used previously (and look where that got us).
3. The current administration is not prioritizing national debt reduction. Almost 1/3 of our debt is held by foreign investors, China chief amongst those investors
. I would like to see us concentrate as much (if not more) on reducing our national debt.
As I am sure someone will quickly point out several reasons why the Obama administration is not at fault for any of these concerns, I am much more interested in how the administration is addressing these issues. The country elected Obama to change the way government works but the majority of responses I have read in this post are based upon "because the person before him did it," as an answer.
I am also pointing out that the Clinton administration held the highest average debt to GDP ratio of our current presidental terms. So while Obama may have inherited a large debt number from the Bush Administration he did not inherit a large debt ratio, that distinction would be for the Bush Administration following the Clinton administration (Excel is a wonderful tool). Just like consumers, carrying debt is not necessarily bad if you can pay it back. Where problems arise is when we can no longer pay back the debt we have accrued.