republished below in full unedited for informational, educational, and research purposes:
Data posted on the Treasury Department’s website indicates that the federal government’s total public debt outstanding increased by $1,054,647,941,626.91 during 2016. Treasury’s online charts show that the federal debt was $18,922,179,009,420.89 on Dec. 31, 2015, the last business day of 2015. On Dec. 30, 2016, the last business day of 2016, it had increased to $19,976,826,951,047.80 — an increase of more than one trillion dollars.
A summary of this data compiled by CNSNews.com noted that the increase in the debt equaled $8,860.65 for each of the 119,026,000 households in the United States as of September, according to Census Bureau estimates.
Furthermore, in case anyone wants to place all of the blame for the debt increase on the Democrats, CNSNews noted that during 2016, while Democrat Barack Obama controlled the presidency, Republicans controlled both houses of Congress.
This is significant, since, according to the Constitution, all bills for raising revenue must originate in the House of Representatives (Article I, Section 7), and Congress shall have power to borrow money on the credit of the United States (Article I, Section 8).
Consequently, even the most profligate occupant of the Oval Office cannot spend a dime or borrow a dime unless Congress gives its approval.
As anyone who has studied even basic economics has learned, the public debt is the cumulative result of budget deficits; that is, government spending exceeding revenues.
If we look at the history of the national debt during the past 39 years, we may be surprised to find that our nation’s fiscal health — in terms of the size of the national debt — fared better under Democrats Carter and Clinton than under the ostensibly conservative Ronald Reagan and both presidents Bush, before escalating more rapidly under Democrat Obama.
An article posted by The New American in 2014 cited as authoritative a source as the Congressional Budget Office (CBO), which had released a report showing that although that year’s deficit would be much smaller than those of recent years, there was ominous news. The CBO report continued on to point out that “later in the coming decade … deficits [will] grow and federal debt [will] climb.” The national debt, according to the CBO, will be $27 trillion in 2024. We also noted:
Of course, the continued economic death march into hopeless debt need not continue, if our federal government can balance its budget through a combination of less spending and greater tax revenues as a result of policies that will stimulate business, generating higher profits and more corporate tax revenue. The great unknown is exactly what economic policies incoming President Donald Trump will put into place.
In an article posted last September, we discussed the potential effects of one of the economic solutions proposed by Trump — a massive cut in the corporate income tax rate from 35 percent to just 15 percent. We predicted that Trump’s cut would invite companies holding cash abroad to seriously consider investing it in the United States, which would, in the words of Terry Jones in Investors Business Daily, “lead to an enormous jump in job creation — yes, Reagan-like job creation.”
When considering whether a cut in corporate tax rates by a full 20-percentage points would have much of an impact on our economy, a look at history is appropriate. As we noted in the aforementioned article:
The key question is not so much if Trump can repeat Clinton’s success story, but if he will be willing and able to do so. This depends on two factors: One, he must follow though on his campaign promises and introduce the tax cuts, and two, members of Congress, including the Republican majority in both houses, must be cooperative and pass legislation putting these proposals into effect.
The annual trillion-dollar increase in the national debt must be stopped and reversed, or economic ruin will surely fall upon us by 2024.
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