Read More »"/> Read More »"/> U.S. Debt Dilemma: Caused by Excessive Spending or Not Enough Revenue? | MyGovCost | Government Cost Calculator

U.S. Debt Dilemma: Caused by Excessive Spending or Not Enough Revenue?


Wednesday July 27th, 2011   •   Posted by Craig Eyermann at 2:45pm PDT   •  

Assuming that the current U.S. debt crisis began in 2008, which is more responsible for the current U.S. government debt crisis: excessive government spending or too big a fall in government tax receipts?

We present the answer using data from 1967 through 2010, graphically, below:

Is the U.S. Debt Crisis a Revenue Problem or a Spending Problem?

At its peak in 2009, we find that the gap between the federal government’s spending and its tax collections is much more heavily weighted toward the side of excessive spending. With spending accounting for approximately 62% of the pre-crisis gap, we find that excessive spending by the U.S. federal government in the years since 2007 is primarily responsible for the current debt crisis.

But that may be a moot issue. The key point to understand in the current debate is that while the federal government is not capable of precisely controlling the amount of its tax receipts from year to year, it is more than fully capable of controlling the amount of its spending. But only if there are enough people elected to the government who make that objective a priority!

Closeup of the Answer!




Facebook Twitter Youtube

Search

amazon.com
Support the Independent Institute when you shop on Amazon with the AmazonSmile program. Every time you make a purchase, 0.5% will be donated to Independent on your behalf, at no extra cost to you. Just visit smile.amazon.com, log in using your usual Amazon account details, and select the Independent Institute as your charity.

Archives

July 2011
S M T W T F S
 12
3456789
10111213141516
17181920212223
24252627282930
31