Why don't Americans realize the deficit is falling?

[Luddly Neddite]

Why don't Americans realize the deficit is falling? - The Week

S

ince Barack Obama was inaugurated in 2009, the federal deficit has fallen dramatically. It has dropped as a percentage of the economy:

And it has also fallen in absolute terms.

In fact, the deficit reduction has been so steep that some economists believe that it has been excessive.

But according to polling, most people are entirely unaware of this trend. Recent polling by Pew suggests just 29 percent of Americans believe the deficit was reduced in the last year, including just 12 percent of Republicans.

To put this in context, fewer Republicans believe that the deficit is shrinking than believe in evolution (43 percent) or man-made climate change (24 percent).

And it's not just Republicans who are unaware that the deficit is falling. Just 50 percent of Democrats and 23 percent of Independents believe the deficit is coming down.

So, what's going on here?

My opinion:

 

[boedicca]

Giving Obama credit for lowering the deficit is like giving An Arsonist credit for tossing a water balloon on a fire that actual Fire Fighters are extinguishing.

 

[S.J.]

Sure, that's why the debt keeps climbing. Try again.

 

[JimmieD]

Should the deficit be falling? It seems to me that there is an assumption on both the right and left that the deficit is a problem that must be solved. But by definition, cutting gov't deficit (be it though cuts in spending and/or tax hikes) acts as a drag on GDP. Why should it be the case that the gov't runs a surplus? How much of a surplus should it run?

BTW, even under the CBO's worst case scenario, they projected a falling deficit until 2017 at which point it begins to increase again. So is the the deficit "problem" solved or are we just on track for the CBO's alternative scenario?
http://www.cbo.gov/sites/default/files/cbofiles/attachments/01-31-2012_Outlook.pdf

 

[S.J.]

When the deficit is going down, but the debt is still going up, that means we're overspending less than before but we're still OVERSPENDING!!! Great, Obama runs up the debt $7 trillion in 5 years, then slows down a little, and you think he should get a fucking medal???

 

[oldfart]

In fact, the deficit reduction has been so steep that some economists believe that it has been excessive.

But according to polling, most people are entirely unaware of this trend. Recent polling by Pew suggests just 29 percent of Americans believe the deficit was reduced in the last year, including just 12 percent of Republicans.

To put this in context, fewer Republicans believe that the deficit is shrinking than believe in evolution (43 percent) or man-made climate change (24 percent).

And it's not just Republicans who are unaware that the deficit is falling. Just 50 percent of Democrats and 23 percent of Independents believe the deficit is coming down.

So, what's going on here?

It was never about the deficit in the first place. It was about crippling the federal government and dismantling 100 years of social and economic progress; of returning to the Robber Baron Era of the 1880's before the Progressive Movement.

Why are so many people fooled? Because the Right has traded on fear and hate and millions of Americans fell for it, consistently voting against their own economic interest. Read any discussion in this forum and you can see it happening.

"If we don't end entitlements like Social Security we will end up like Zimbabwe, I tell you! Zimbabwe!"

 

[dblack]

Because they're too busy trying to figure out how to pay for health insurance they don't need.

 

[eagle1462010]

Deficits were massive after the crash with the bail outs and stimulus packaging.........

Trillions spent..............Cutting it in half is only getting it back to traditional levels..............

This year we spent over 400 BILLION on interest on the debt alone.

By 2020 it is expected to be approximately 800 BILLION a year..........

Which part of UNSUSTAINABLE DEBT don't you understand...........

This is the reality of where we are heading.........And when Sequester occurred, they cried the sky is falling at ONLY A 1% CUT.............

Our Gov't refuses to cut..........Our Gov't refuses to FREEZE new expenditures at current levels.......

Our Gov't ignores wasteful spending potential cuts time and time again, even as they are reported over and over again...............

The path to Hell is paved with good intentions............Deficit in half my ass.

 

[JimmieD]

This year we spent over 400 BILLION on interest on the debt alone.

This year our output was 17 TRILLION. So, we spent 2% of our national income on interest.

By 2020 it is expected to be approximately 800 BILLION a year..........

What will our output be in 2020?

For an easier example; if I make $12,000 in interest payments a year on my mortgage, is that a lot? Probably not if it's 2% of my income, which would mean my income were $600,000/yr.

Out of curiosity, where did your 800 billion figure come from?

Which part of UNSUSTAINABLE DEBT don't you understand...........

Is it unsustainable? How do you know?

Our Gov't refuses to cut..........Our Gov't refuses to FREEZE new expenditures at current levels.......

You do realize that the OP's point is that the deficit is falling, right?

Our Gov't ignores wasteful spending potential cuts time and time again, even as they are reported over and over again...............

Which wasteful cuts are you thinking about?

Deficit in half my ass.

So the figures in the OP (and from the Fed, Treasury BLS, and CBO) are wrong, but yours are right? Didn't your numbers originate from the Treasury too?

 

[norwegen]

Deficit spending has been cut in half since 2009? That's amazing.

By how much has it been cut since 2008? Comparing Obama's spending to Obama's spending is rather pointless, wouldn't you say?

 

[Quantum Windbag]

Why doesn't the OP admit that the debt is a major problem?

IMF paper warns of 'savings tax' and mass write-offs as West's debt hits 200-year high - Telegraph

 

[jasonnfree]

Deficits were massive after the crash with the bail outs and stimulus packaging.........

Trillions spent..............Cutting it in half is only getting it back to traditional levels..............

This year we spent over 400 BILLION on interest on the debt alone.

By 2020 it is expected to be approximately 800 BILLION a year..........

Which part of UNSUSTAINABLE DEBT don't you understand...........

This is the reality of where we are heading.........And when Sequester occurred, they cried the sky is falling at ONLY A 1% CUT.............

Our Gov't refuses to cut..........Our Gov't refuses to FREEZE new expenditures at current levels.......

Our Gov't ignores wasteful spending potential cuts time and time again, even as they are reported over and over again...............

The path to Hell is paved with good intentions............Deficit in half my ass.

So what are discussing, deficits or debt? They are two different subjects you know.

 

[SteadyMercury]

Sure, that's why the debt keeps climbing. Try again.

The debt climbing and deficit shrinking are not mutually exclusive states.

Because they're too busy trying to figure out how to pay for health insurance they don't need.

At risk of going along with your thread derail, how can anyone not need health insurance?

 

[Luddly Neddite]

Sure, that's why the debt keeps climbing. Try again.

I suggest you learn the difference between the "debt" and the "deficit".

 

[eagle1462010]

Deficits were massive after the crash with the bail outs and stimulus packaging.........

Trillions spent..............Cutting it in half is only getting it back to traditional levels..............

This year we spent over 400 BILLION on interest on the debt alone.

By 2020 it is expected to be approximately 800 BILLION a year..........

Which part of UNSUSTAINABLE DEBT don't you understand...........

This is the reality of where we are heading.........And when Sequester occurred, they cried the sky is falling at ONLY A 1% CUT.............

Our Gov't refuses to cut..........Our Gov't refuses to FREEZE new expenditures at current levels.......

Our Gov't ignores wasteful spending potential cuts time and time again, even as they are reported over and over again...............

The path to Hell is paved with good intentions............Deficit in half my ass.

So what are discussing, deficits or debt? They are two different subjects you know.

I understand that they are different subjects, but the Gov't will not even address the Deficit.........Let alone the Debt. You can have a balanced budget and the debt can still increase...............

Government - Interest Expense on the Debt Outstanding

415 BILLION last year 2013

38 BILLION so far this year.

CBO | The 2013 Long-Term Budget Outlook

The federal government’s net interest payments would grow to 5 percent of GDP, compared with an average of 2 percent over the past 40 years, mainly because federal debt would be much larger.

 

[Luddly Neddite]

Why doesn't the OP admit that the debt is a major problem?

IMF paper warns of 'savings tax' and mass write-offs as West's debt hits 200-year high - Telegraph

Not surprising that you don't know the difference between the debt and the deficit.

 

[Truthmatters]

why did you right wing fools cheer when Bush SPENT the savings Clinton created ?

why did you cheer when he sent us to war on lies and then REFUSED to pay for those wars?

because the right in this country is not interested in fixing anything.

they want this government weak and ineffective.


they hate government and seek to cripple it to further their historically failed ideas

 

[eagle1462010]

http://www.cbo.gov/sites/default/files/cbofiles/attachments/43907-BudgetOutlook.pdf

Net Interest. The increase in debt (in dollar terms), along
with an anticipated substantial rise in interest rates as
the economy strengthens, is expected to sharply boost
interest payments on the debt. CBO projects that, under
current law, the government’s yearly net interest spending
will double as a share of GDP—from 1.5 percent in 2014
to 3.3 percent in 2023, a percentage that has been
exceeded only once in the past 50 years

Most reports I have read show the Interest on the debt at approximately 800 Billion a year for 2020......

I have given this site, to the one that questioned my data on this number. From the CBO projected to double in payments on the interest on the debts in 2023. Earlier CBO projections where at 798 BILLION a year.

I have provided the Treasury Direct data to back up the Interest payments already.

 

[bripat9643]

Should the deficit be falling? It seems to me that there is an assumption on both the right and left that the deficit is a problem that must be solved. But by definition, cutting gov't deficit (be it though cuts in spending and/or tax hikes) acts as a drag on GDP. Why should it be the case that the gov't runs a surplus? How much of a surplus should it run?

BTW, even under the CBO's worst case scenario, they projected a falling deficit until 2017 at which point it begins to increase again. So is the the deficit "problem" solved or are we just on track for the CBO's alternative scenario?
http://www.cbo.gov/sites/default/files/cbofiles/attachments/01-31-2012_Outlook.pdf

Your theory that government borrowing is good for the GDP is utterly hilarious.

Claims like that are the reason I love this forum. You can't buy better entertainment.

 

[oldfart]

Should the deficit be falling? It seems to me that there is an assumption on both the right and left that the deficit is a problem that must be solved. But by definition, cutting gov't deficit (be it though cuts in spending and/or tax hikes) acts as a drag on GDP. Why should it be the case that the gov't runs a surplus? How much of a surplus should it run?

BTW, even under the CBO's worst case scenario, they projected a falling deficit until 2017 at which point it begins to increase again. So is the the deficit "problem" solved or are we just on track for the CBO's alternative scenario?
http://www.cbo.gov/sites/default/files/cbofiles/attachments/01-31-2012_Outlook.pdf

Your theory that government borrowing is good for the GDP is utterly hilarious.

Claims like that are the reason I love this forum. You can't buy better entertainment.

So eloquent of bripat9643. For a victory lap he negged for my post on this thread. Real class. But I guess if you can never form a coherent argument, negging and name calling is all you have left.

But don't worry Bripat, you know I never neg anyone.