Posted on 08/25/2026 11:09:33 AM PDT by MtnClimber
It has been amusing to watch mainstream journalists (who’ve largely ignored the national debt crisis until it hit a nice round number of $40 trillion) try to explain how it’s all the fault of Middle East wars and tax cuts.
Somehow, the fact that federal spending has increased by nearly 300% over the past 25 years never enters the picture.
Instead, we get endless accounts about how President Donald Trump’s One Big Beautiful Bill Act will add $4 trillion to the national debt, and how previous tax cuts by Trump and George W. Bush are supposedly responsible for more than a third of the current debt.
The Wall Street Journal puts it this way: “Wars, the bursting of the dot-com bubble, and tax cuts sent budgets off course in the early 2000s.”
False. False. And False.
Wars: In 2001, the Defense Department accounted for 15.6% of federal spending. In 2015, it was 15.2%. This year, it will account for just 12.1%.
Dot-com bubble: Federal revenues did fall 11% after the bubble burst in 2000 and the economy went into a mild recession. But revenues reached a new peak in 2005.
Tax cuts: Federal revenues today are 159% higher than they were in 2000. They are on track to climb another 38% in the next five years.
So, no. None of those explain why national debt has gone from $5.67 trillion to $40 trillion since 2000, or why it’s doubled since 2017.
What does?
Well, take a look at the chart below. What do you see?
You will perhaps notice that over the past quarter century, tax revenues as a share of GDP have hovered right around 17.4% – which was the average from 1946 to 2000. All the Bush and Trump tax cuts did was keep revenues in that narrow range.
But look at spending. From 1946 to 2000, it averaged 19% of GDP. The last time there was a budget surplus, spending was below that long-term trend. Since then, it’s never been close.
And there were two massive increases in spending, thanks to Barack Obama’s failed “stimulus” and Joe Biden’s failed “rescue plan,” neither of which was needed and both of which were followed by sluggish growth.
In addition, both Obama and Biden expanded the entitlement state, which set the federal government on a permanently higher spending path. There were plenty of bipartisan spending splurges as well.
The result is that while revenues went up 159%, spending has gone up almost twice as fast.
To Democrats, this is just evidence that taxes are too low. But it would be impossible to raise taxes enough to pay for all this additional spending without crashing the economy, which would, in turn, suppress tax revenues and increase federal entitlement spending.
We got into this hole because politicians have been spending like there’s no tomorrow. The only way out of this hole is to cut spending. Or at least moderate its growth so spending as a share of GDP can return to its historic average.
That should be simple enough even for brain-dead corporate journalists to understand.
Bringing in millions of third worlders from all over the globe and giving them access to a cornucopia of government programs including housing that Americans can’t afford doesn’t help either.
For later.
L
If people wanted to address the affordability crisis and actually HELP the American people they would do this:
28th Amendment.
No Congressperson (House or Senate) may run be sworn in to serve in either House if they are in office when a budget is passed, or an extension given, that exceeds the prior year tax revenue. No Congressperson who is in office will be entitled to any government Benefit, including Medical, Retirement, or other benefits, NOR will their family members be entitled, if they participated in an event of exceeding the tax revenue of the prior year. Ineligibility is lifelong.
After that, sit back and watch. “and just like that” things will actually start to make sense again.
Ltr
There are many reasons for our outrageous national debt.
But to dismiss wars as a top reason is disingenuous, to say the least.
🙁
Wasn’t this predicted long ago, since it was known that the baby boomers would retire and the costs of Medicare would go up, experienced personnel would retire, the work force would shrink relative to the population as a whole, etc?
I think a lot of that was known. One thing I am hearing recently is that a lot of Gen X are burned out and they are retiring early if they possibly can. Well before age 65.
And Gen Z is often considered not suitable for the workforce. So — not to overstate things — the Millennials may suddenly be the key players for the whole workforce. I don’t think too many people were expecting that outcome at this time.
✅
“Private” “Property” confiscation.
GDP has not gone down, spending has gone way up. I think much of the spending increase is through NGOs and fraud.
So why did federal spending tripled during 8 years of Reagan?
How many spending bills Reagan vetoed?
Talk is cheap. Action matters.
In fairness, Reagan was trying to crush the USSR by markedly increasing defense spending. In addition, he was faced with Jimmy Carter’s horrid economy. Reagan ushered in huge tax cuts which initially contributed to budget deficits but eventually helped Americans in the long run.
Bottom line....
Reagan tripled federal spending in 8 years.
Whether that was necessary or not is debatable.
Without adjusting for inflation that chart is useless.
Even J D Vance and his taskforce have only come up with 230 billion. We can still make the tough decisions now, before it becomes deeply painful, with fewer options, later.
I look for to you posting the chart adjusted for inflation. In the interim, the nation debt in calculated nominal dollars or as a percentage increase relative to the GDP. I will wait for your chart.
PROPOSE MANDATORY MINIMUM 20 YEARS JAIL FOR ANY GOVERNMENT FRAUD
1 YEAR AMNESTY FOR SELF-REPORTING
10% REWARD FOR ANYONE REPORTING FRAUD
10% BONUS FOR EVERY AGENCY THAT SPENDS LESS MONEY (NO MORE SPEND IT OR LOSE IT)
we need to the same with the 3rd central bank.
- - - - - - -
You’re right but I think americans who lived during Andrew Jackson’s presidency were much smarter than today’s americans.
.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.