Why Surpluses Evaporate (1998-2001)

This is from the Mercatus Center, adapted from an article by Charles Blahous in his e21 piece “How Did Federal Surpluses Become Huge Deficits?. According to Virginia de Rugy of Mercatus:

According to the CBO, three areas have influenced the swing from projected surpluses to actual deficits over the 2002–2011 period: (1) increased spending, (2) a shortfall in tax revenue, and (3) projection inaccuracies.

As we can see on these charts [below], over the 10-year period, about three-fourths (73 percent) of the $12.7 trillion growth in federal debt was spending and tax legislation, the rest being the product of projection inaccuracies—such as expecting higher growth, increased revenue, or lower spending.

Click through to see the charts.


2 comments to Why Surpluses Evaporate (1998-2001)

  • Joe

    it would be nice if TRUTH REALLY CAME OUT


    he stole SSI money and used FAKE accounting

  • Barry

    So why didn’t the GOP impeach him for “stealing SSI money” and using “FAKE accounting”? The GOP controlled the House.

    Am I missing something?

    Also, didn’t Reagan, Cheney, Kudlow all say that ‘deficits don’t matter’?