There’s no denying the fact that America has a huge debt problem, and even that, is an understatement. It’s a little known fact that the total debt owned by the federal government crossed the $21 trillion mark back in March, 2018.
The issue is further compounded by the fact that this debt is much greater than what the country is able to generate in a year (i.e. the Gross Domestic Product). As a result, this astronomical figure shows no signs of slowing down and continues to increase with time.
Today, we’ll be taking a closer look at how this problem started.
1. The Franklin D. Roosevelt Administration:
President Franklin D. Roosevelt was tasked with a very tough job. He had to not only end the Great Depression but also prepare our country for World War II. As a result, the US debt grew the most it had ever during his administration. Although the federal debt at that time was *merely* $268 billion, it did, however, mark a 1048% increase in the country’s debt!
2. The Bush Administration:
The Bust Administration is also to blame for the astronomically high levels of federal debt. For starters, he had to deal with nearly $700 billion in bailouts to big organizations and national banks. The problem was further compounded by the War on Terror, which (although necessary at that time) drained our GDP exponentially, making his administration the second worst for federal debt.
3. The Barack Obama Administration:
President Barack Obama may be an admirable man with staunch principles, but he’s also to blame for current levels of federal debt. In fact, his administration had the worst effect on our federal debt as numbers show that the US debt increased by nearly $9 trillion during the 8 years he was in charge.
Although he introduced Obama Tax Cuts and spent nearly $800 billion on the military, it’s obvious that his vision was short-sighted and significantly crippled our economy.
4. The Donald Trump Administration:
Whether you like the 45th United States President or not, his administration has worked wonders for the federal debt! For starters, the GDP has increased to 4.1% while the unemployment rate sits at a mere 3.9% (as compared to 1.6% and 9.4% in the Obama administration respectively). Furthermore, the national deficit has also been decreased to $532 billion (as compared to $936 billion during the Obama administration).
This shows that we’re on the right path and that we might just rid ourselves of this monetary handicap that threatens to halt our progress!
About Free Rein Report:
We’re a news outlet that aims to bring the facts to the people. We provide quick updates on the US economy, business news, and latest political events. Feel free to contact us for any queries or questions!