Those on the left have recently been bragging about Obama’s job of cutting the deficit. Cutting the deficit is important because of the growing national debt in the US. The US currently owes 18 trillion dollars. To make our payment on the debt the US pays over 200 billion dollars a year. This is the amount the US pays with the interest rate at 0%. In the future, the US is expected raise the interest rate by at least .25%. As the interest rate increases so does the amount the US must make in each payment on the debt. Each rate increase of .25% will add over an extra 100 billion dollars to our payment on the debt each year. With the historical average interest rate around 5%, if we do not start to reduce the national debt we could be paying a $1,000,000,000,000 just in minimum payments on the debt each year. So what does the deficit look like under our current president.
As you can see above, the numbers starting in 2009, the first year of the Obama presidency, the US was running an annual deficit of over 1.4 trillion dollars. In 2014, the deficit had decreased to 483.3 billion dollars. It is a little misleading to say that Obama had decreased the deficit by a trillion dollars, since all of the Obama deficits have been more than any of Bush’s. It is true that the official US deficit has decreased by a trillion dollars while Obama has been in office; however, this was not a trillion dollar reduction from the previous president.
We get a different picture when we look at the amount of money added to the budget each year. Looking at 2014 the deficit is 483 billion dollars while we will add over a trillion to the national debt. That leaves over 500 billion dollars that is not counted to the deficit, but still added to the debt. The amount of money that is added to the debt is a more accurate way of calculating a deficit. As the amount of money added to the debt is, how much you had to barrow to cover all the expenditures after revenue has run out.
Government misleads the American people all the time. Claiming that the deficit is 500 billion dollars smaller than it actually is just another misleading claim. President Obama will leave office having doubled the national debt, to 20 trillion dollars. This debt will have to be paid off and the interest we owe for the debt will continue get more and more difficult to pay. Remember the debt is public so we are all are responsible for it.