How The Presidents Truly Rank On Budget Deficits :: Political News and commentaries

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July 12, 2012

How The Presidents Truly Rank On Budget Deficits

Over at Forbes today, James K. Glassman uses three sets of calculations for each of the past five presidents to clear up once and for all exactly how they compare in accordance with the average deficit-to-GDP ratio during their presidential term. The result provides a good take on how their deficits rate in historic terms.

Glassman used three sets of calculations for each president: first, the deficit-to-GDP ratio from the fiscal year he took office to the fiscal year he left minus one (thus, for Reagan: 1981-88); second, from his first fiscal year plus one to the fiscal year he left (thus, 1982-89); and third, an average of the first two.

Here are the ratios of deficit to GDP for the past five presidents that he came up with:

Ronald Reagan
1981-88 4.2 %
1982-89 4.2
Average 4.2

George H. W. Bush
1989-92 4.0
1990-93 4.3
Average 4.2

Bill Clinton
1993-2000 0.8
1994-2001 0.1
Average 0.5

George W. Bush
2001-08 2.0
2002-09 3.4
Average 2.7

Barack Obama
2009-12* 9.1
2010-12 8.7
Average 8.9
*fiscal 2012 ends Sept. 30, 2012, so this figure is estimated

Source: Economic Report of the President, February 2012

As Glassman goes on to point out, there is no denying the order in which the last five presidents rank on the basis of deficits: Clinton, Bush 43, Bush 41 and Reagan in a virtual tie, and Barack Obama at rock bottom with more than double the average debt-to-GDP ration of his predecessors.

One can only imagine what our debt-to-GDP ratio is going to look like if Obama is given another whack at wiping out our national solvency!

Posted by Hyscience at July 12, 2012 11:50 AM

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