Monday, December 5, 2011

Deficits Result of Runaway Spending, Not Reduced Revenue

This chart from the Heritage Foundation shows that during the Bush era, while spending accelerated as a percentage of the Gross Domestic Product, it actually stabilized in the last years of his presidency. Meanwhile,  revenues were growing much faster than spending. During the Obama era, spending exploded, as tax revenues declined. At the current rate of spending and revenue, the gap between the two will only widen, even though projections suggest a huge increase in revenue to the government. The problem will not be lack of income, it will be lack of spending restraint. Read the full story here.

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