ECONOMIC FAILURE

One factor that is most disturbing is the increase in the National Debt for almost a century. The important numbers are the Debt/GDP ratio,which have only been higher in the post WWII recession years 1945,46,and47.  There was  a fairly stable rate in the 50-68% range from the end of the Korean War (63) until 2009. The big increase to near the entire GDP seems to be a result of the ARRA (Stimulus Act). In actual percentages this years debt is about 12% higher than in 09.

The only way that we can prevent massive inflation is to reduce the debt especially when related to the GDP. That will mean that two things mus5t happen;(1) Government income must increase. To do this Taxes must be raised and the rates for the true wealth should increase materially. The Republicans must be willing to yield on this. (2) Government expense must decrease.The military expenses although significant have not been the only major factor. The ARRA had a great impact as had the  increase in entitlement programs. The Democrats will not consider a review and scaling back.

Both parties not one are responsible for the mess that we are in. Until the self-centered idiots that we send to Congress and the social dreamers in Washington accept reality we are headed for an economic  crisis greater than any we have ever seen. The dollar will be worthless,savings will be  useless, and unemployment will lead to anarchy.

We the people must demand responsibility in Washington.

National Debt by Year Since 1929 Compared to Nominal GDP and Major Events

End of Fiscal Year	Debt (in billions)	GDP (in billions)	Debt/GDP Ratio	Event
2012	$16,066	$16,356	98%
2011	$14,790	$15,612	95%	Obama Stimulus Act (ARRA) spent $120 billion.
2010	$13,562	$15,050	90%	ARRA budgeted $400 billion.
2009	$11,910	$14,384	83%	Economy contracted 8.9% in Q4 '08, 6.7% in Q1 '09. ARRA spent $241.9 billion. War on Terror cost $79 billion. Fed funds rate lowered to 0%.
2008	$10,025	$14,844	68%	Economy contracted 3.7% in Q3 '08, 1.8% in Q1 '08. War on Terror cost $197.6 billion, Bank Bailout Bill cost $350 billion.
2007	$9,008	$14,572	62%	War on Terror cost $173.6 billion.
2006	$8,507	$13,911	61%	Katrina clean-up was $24.7 billion, swine flu added $6 billion, War on Terror cost $120.4 billion.
2005	$7,933	$13,207	60%	War on Terror cost $107.6 billion.
2004	$7,379	$12,369	60%	War on Terror was $94 billion.
2003	$6,783	$11,628	58%	Unemployment still at 6%. War on Terror cost $53 billion.
2002	$6,228	$11,040	56%	War on Terror added $33.8 billion.
2001	$5,807	$10,644	55%	2001 recession and 9/11 Attack
2000	$5,674	$10,364	55%
1999	$5,656	$9,719	58%
1998	$5,526	$9,147	60%
1997	$5,413	$8,692	62%
1996	$5,225	$8,159	64%
1995	$4,974	$7,707	65%
1994	$4,693	$7,352	64%
1993	$4,411	$6,904	64%
1992	$4,065	$6,587	62%
1991	$3,665	$6,218	59%	1991 recession.
1990	$3,233	$6,030	54%	Desert Storm.
1989	$2,857	$5,712	50%	Savings and Loan Crisis cost $125 billion.
1988	$2,602	$5,300	49%
1987	$2,350	$4,901	48%
1986	$2,125	$4,620	46%	President Reagan lowered tax rates.
1985	$1,828	$4,395	42%
1984	$1,572	$4,087	38%
1983	$1,377	$3,692	37%	Unemployment from the 1982 recession peaked at 10.8%.
1982	$1,142	$3,367	34%	1982 recession, GDP fell 6.4% in Q1 '82.
1981	$998	$3,261	31%	Beginning of 1982 recession.
1980	$908	$2,860	32%	1980 recession, Iran oil embargo, GDP fell 7.9% in Q2 '80.
1979	$827	$2,670	31%	Volcker became Fed Chair, increasing Fed funds rate to 20% to combat inflation.
1978	$772	$2,399	32%
1977	$699	$2,122	33%
1976	$620	$1,891	33%
1975	$533	$1,714	31%	Unemployment from 1973-75 recession peaked at 9% in May, GDP was down 4.8% in Q1 '75.
1974	$475	$1,563	30%	Wage-price controls worsened recession.
1973	$458	$1,437	32%	OPEC raised oil prices, Nixon went off gold standard, tripling inflation rate to 9.7%.
1972	$427	$1,294	33%
1971	$398	$1,180	34%	GDP down 4.2% in Q4 '70. Unemployment from 1970 recession peaked at 6.1% in Dec.
1970	$371	$1,089	34%
1969	$354	$1,032	34%
1968	$348	$952	36%
1967	$326	$867	38%
1966	$320	$821	39%
1965	$317	$750	42%	Vietnam War starts, total cost will be $111 billion.
1964	$312	$693	45%
1963	$306	$645	47%
1962	$299	$610	49%
1961	$289	$568	51%	GDP fell 4.2% in Q4 '60. Unemployment peaked at 6.1% in Dec.
1960	$286	$546	52%	1960 recession started.
1959	$285	$525	54%
1958	$276	$487	57%	GDP fell 4.2% in Q4 '57, and another 10.4% in Q1 '58. Unemployment peaked at 7.1% in Sep '58.
1957	$271	$480	56%
1956	$273	$452	60%
1955	$274	$431	64%
1954	$271	$392	69%	Recession follows end of Korean War.
1953	$266	$392	68%	Korean War ends, total war cost $30 billion.
1952	$259	$368	70%
1951	$255	$352	73%
1950	$257	$309	83%	Korean War starts.
1949	$253	$273	92%	1949 recession.
1948	$252	$280	90%
1947	$258	$250	103%
1946	$269	$228	113%	GDP fell 11%.
1945	$259	$228	116%	1945 recession due to end of WWII. War cost $296 billion.
1944	$201	$225	89%
1943	$137	$203	67%
1942	$72	$166	44%
1941	$49	$129	38%	Attack on Pearl Harbor, US entered WWII, ending the Great Depression.
1940	$43	$103	42%
1939	$40	$94	43%
1938	$37	$87	43%
1937	$36	$93	39%
1936	$34	$85	40%
1935	$29	$74	39%
1934	$27	$67	40%	World trade is down 66% from start of Depression.
1933	$23	$57	39%	Roosevelt took office, New Deal signed. Unemployment peaked at 25%.
1932	$19	$60	33%	Hoover worsened depression by raising taxes to balance budget.
1931	$17	$77	22%
1930	$16	$92	18%	Stock Market Crash of 1929. Congress passed Smoot-Hawley Tariffs.
1929	$17	$105	16%	Hoover maintained high wage controls. Fed raised discount rate to defend gold standard, creating deflation. Combination forces bankruptcies on businesses.

I regret that I have lost for the moment the source of the table.