Borrow and buy and blame it on the other guy

I hope I'm not hammering on this issue too hard, but as I keep hearing the argument that our growing debt is an isolated and dangerous problem only now to be addressed because we have a Democratic president and Democratic is another word for Communist insurgent, I can't be accused of beating a dead horse. No matter how smelly, the horse is still running and in fact, may be moving into first place.



I hope the data shown above will dispel some of the smoke clouds from our cold civil war. Of course data is data and interpretations will vary, but can't we tell that the steepest declines in debt Vs. GDP occurred, like economic expansion, during years when top marginal brackets were over 50% and as high as 90%? Doesn't it appear that the alleged expansion during Reagan's years was really only a manifestation of surging debt ratios? Doesn't it also look like anything one might call growth during W's terms was simply exploding debt which caused so much liquidity, so many dollars flowing into hot air derivatives and overpriced real estate and unregulated, over valued securities that the worst boom/bust cycle since the 1920's blew up in our face? Isn't it obvious that any apparent prosperity under Reagan fell hopelessly short of offsetting his profligacy in running up the debt? Isn't it obvious that the market boom under W. was the result of people like me having more money than they know what to do with and pumping up the markets to the point of the biggest bang in 14.7 billion years?

Isn't it hard, seeing the upward momentum to expect anything the current president could do would cause a 180 degree reversal in the time he's been in office?