Posted by Glenn Kesslerat 06:00 AM ET, 09/29/2011
Who Increased the Debt? President Reagan 189%. President GHW Bush 55%. President Clinton 37%. President GW Bush 115%. President Obama 16%.”
— Data on a chart floating around the Web this week (an older version of the chart above)
This post has been updated since it was first published.
There’s a saying attributed to Winston Churchill that goes something like this: "A lie gets halfway around the world before the truth has a chance to get its pants on."
Try as we might at The Fact Checker, we find that no matter how many times we clearly identify an untruth — such as a ridiculous e-mail on Obama’s health-care plan — it still keeps popping up, months later.
So imagine our surprise when we found in our Facebook feed this week a chart, purporting to show how Republican presidents — Ronald Reagan, George H.W. Bush and George W. Bush — had increased the debt by a significantly greater percentage than either Bill Clinton or President Obama. Pretty impressive chart, “liked” by at least 7,000 people on a posting by the liberal group MoveOn.org.
But this chart, originally created by the office of House Minority Leader Nancy Pelosi, is as phony as a three-dollar bill. Our friends at PolitiFact did a pretty thorough takedown of it in May, giving it their worst rating: “pants on fire.” They even caught the Pelosi people in a bad mathematical error, based on the fact that the Democrats calculated the numbers as if Obama took office a year later than he did.
That error greatly reduced Obama’s supposed percentage increase (from 35 percent to 16 percent) and boosted George W. Bush’s increase (from 86 percent to 115 percent). Pelosi’s office corrected the math error after it was spotted by PolitiFact, but amazingly, the chart that turned up in several places in our Facebook feed was the old chart.
But even with the corrected number, this is still a Four-Pinocchio whopper. Let’s explain why.
The Facts
The person who posted this on Facebook noted: “From the US Treasury Dept — any questions?” But it actually is not a Treasury Department calculation, just manipulated data taken from the Treasury Web site.
The chart has some basic conceptual flaws. For instance, as the debt keeps getting higher, the possible percentage increases will keep getting smaller. Under the mixed-up logic of this chart, a person can go from 10 to 20, and that would be a 100 percent increase. If the next person goes from 20 to 30, that’s only a 50 percent increase, even though the numerical increase (10) is the same.
The chart also cherry-picks the data that portray Obama in the best light by claiming to show “public debt” but in actuality using the statistics for gross debt.
Gross debt includes intergovernmental transactions such as bonds held by Social Security and Medicare, but public debt is the more commonly used figure of national indebtedness, at least among economists.
If the chart actually used public debt rather than gross debt, it would have put Obama and George W. Bush virtually in the same league — 60 percent increase (as of September 2011) for Obama versus 70 percent for Bush — even though Bush served as president much longer.
But the biggest problem is that this is just dumb math. What really counts is not the raw debt numbers, but the size of the debt as a percentage of the gross domestic product. The GDP is the broadest measure of the national economy and directly indicates the nation’s ability to service its debts. In fact, the White House budget office historical tables portray much of the data as a percentage of GDP, because that is the best way to truly compare such numbers over time.
If the chart were recast to show how much the debt went up as a percentage of GDP, it would look pretty bad for Obama after not even three years in office. In fact, Obama does almost twice as poorly as Reagan — and four times worse than George W. Bush.
Reagan: plus 14.9 percentage points
GHW Bush: plus 7.1 percentage points
Clinton: down 13.4 percentage points
GW Bush: plus 5.6 percentage points
Obama: plus 24.6 percentage points
(Note: We derived most of these data from table 7.1 of the budget office historical tables, which gives end-of-fiscal year figures, so they do not quite match up to presidential terms. Obama’s figures are based on the GDP: public debt ratio as of June 30, 2011)
Update: David Clayton, one of our dedicated readers, crunched the numbers for calendar years and shows that, in the transition from Bush to Obama, adjusting the dates makes a difference in the result. His math shows that a more accurate figure would be plus 11.6 percentage points for Bush and plus 19.7 percentage points for Obama. The shift doesn’t change the overall result but divides up the responsibility for the debt more accurately. In a later column, we also posted other ways that readers suggested to look at presidential debt records.
One can offer reasons for why Obama’s performance appears so poor, including the fact that he is battling a recession. An improvement in the nation’s economy would boost the gross domestic product, which would certainly begin to reduce his ratio. But the fact remains that under basic economic measures, not phony ones, his record on the growth of the national debt is the worst of recent presidents. (We make that statement using the logic of Pelosi’s office, which pins all of the growth of the debt on individual presidents. In reality, many factors, including the economy, wars and congressional actions, contribute to the rise of the debt.)
The Pinocchio Test
If MoveOn.org or Pelosi’s office had any sense of shame, they would have quietly removed the links to this chart from their websites when PolitiFact gave it a “pants on fire” rating four months ago. The fact that an outdated version is still floating around — and that people are still deluded into thinking it to be correct — is doubly shameful.
Four Pinocchios
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more facts about debt - a repost...
Obama Has Now Increased Debt More than All Presidents from George Washington Through George H.W. Bush Combined
By Terence P. Jeffrey
October 5, 2011
(CNSNews.com) - The Obama administration passed another fiscal milestone this week, according to new data released by the Treasury Department. As of the close of business on Oct. 3, the total national debt was $14,837,099,271,196.71—up about $44.8 billion from Sept. 30.
That means that in the less-than-three-years Obama has been in office, the federal debt has increased by $4.212 trillion--more than the total national debt of about $4.1672 trillion accumulated by all 41 U.S. presidents from George Washington through George H.W. Bush combined.
This $4.212-trillion increase in the national debt means that during Obama’s term the federal government has already borrowed about an additional $35,835 for every American household--or $44,980 for every full-time private-sector worker. (According to the Census Bureau there were about 117,538,000 households in the country in 2010, and, according to the Bureau of Labor Statistics, there were about 93,641,000 full-time private-sector workers.)
When Obama was inaugurated on Jan. 20, 2009, according to the Treasury Department, the total national debt stood at $10,626,877,048,913.08.
At the end of January 1993, the month that President George H. W. Bush left office, the total national debt was $4.1672 trillion, according to the Treasury. Thus, the total national debt accumulated by the first 41 presidents combined was about $44.8 billion less than the approximately $4.212 trillion in new debt added during Obama’s term.
As of Monday, Obama had been in office 986 days—or about 32 and a half months. During that time, the debt increased at an average pace of $4.27 billion per day. Were that rate to continue until Obama’s term ends on Jan. 20, 2013, the debt would then stand at about $16.86534 trillion—an increase of more than $6.2 trillion for Obama’s four years.
That would equal nearly $53,000 for each American household or more than $66,00 for each full-time private-sector worker.
That total national debt did not exceed $6.2 trillion until 2002, when George W. Bush was president.
1 comment:
So George W. Bush increased the national debt by 4.4 Trillion dollars (which is way too much), but Obama has already increased it that much in 3 years, while it took Bush 8 years. So they are both irresponsible spenders and I don't think we need either one of them again. Obama is way worse than George W. Bush even.
Shame on Pelosi for the complete fraud that she is, as well as Obama.
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