Tuesday, March 18, 2008

U.S. Government Spending and Revenues

There are a number of great myths that many Republicans have about Clinton's economic performance versus George W. Bush. I have talked about debt accumulation at great length on this blog, but when we look at growth in government spending and revenue collection, Clinton's performance was far, far better.

The non-partisan Congressional Budget Office (CBO) reports real economic figures.

If you look at Table 1 of the CBO link, you can see the actual outlays (spending) of the U.S. Government. Here are the outlays:

1992 - $1.38 trillion
2000 - $1.79 trillion
2007 - $2.73 trillion.

The President's current budget proposes spending more than $3 trillion.

Using these figures, we can see that government spending under Clinton grew from $1.38 trillion to $1.79 trillion. This comes out to $410 billion more per year than the last year of Bush Sr. But, by the end of this year, George W. Bush will have added about more than $1.2 trillion in new annual government spending (it will be more when all is said and done).

As a percerntage, Clinton grew annual government spending by 29.7 percent [(1.79-1.38)/1.38]. Bush has grown annual government spending by 67.6 percent [(3-1.79)/1.79].

Republicans like to say that the tax cuts increased government revenues to record levels. Under Clinton, revenues rose by about 90 percent (about $900 billion in new revenues). Under Bush, revenues have risen about 25 percent (about $500 billion).

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