How Big Deficits Became the Norm

The Wall Street Journal ^ | December 18, 2012 | DAVID WESSEL

[MinorityRepublican]

Big budget deficits haven't always been with us.

From the end of the Eisenhower years through the Carter presidency, the deficit averaged a modest 1.4% of the nation's economic output. The budget was nearly balanced in seven of the 20 years from 1960 to 1979. And, as Bill Clinton reminds at every opportunity, the U.S. government was in surplus for four years at the end of his presidency.

[MinorityRepublican]

[Red Dog #1]

Abandoning the gold standard was one of the first steps down a bad path.

[TwelveOfTwenty]

And, as Bill Clinton reminds at every opportunity, the U.S. government was in surplus for four years at the end of his presidency.

Clinton didn't have to budget for the Cold War which ended before he took office, was the beneficiary of the tax revenue generated by the jobs created by the tech boom, and punted the WOT and its expense to the next administration.

And yet in spite of this which included the trillion dollar hit we took on 9/11, the deficit was 165 billion and shrinking when, um, what changed in January, 2007?

[running_dog_lackey]

“And, as Bill Clinton reminds at every opportunity, the U.S. government was in surplus for four years at the end of his presidency.”

If there was a surplus, then why did we have to borrow money throughout those four years?

[andyk]

If there was a surplus, then why did we have to borrow money throughout those four years?

I guess if private government debt doesn't count when calculating the total debt, then one has to admit that there are no trust funds.