On This Day in History: May 26, 

2019 – May God Bless and Save the United States of America – Our Constitutional Republic !

US Debt Ceiling

So President Donald Trump and the Congress worked out a deal to allow the debt ceiling to rise to $23 Trillion. This deal is a politician’s dream because it takes any discussion of spending off the table through the 2020 election cycle. This law, signed 22 July 2019, allows for discretionary spending this year of $1.32 Trillion and increases to $1.37 Trillion next year.

Like individuals, families and corporations, most nations have debt. This generally is not a problem provided the debt to income ratio is properly managed. Mortgagors limit this ratio to 43%, preferably much less, to those seeking a mortgage. If we were to calculate the national debt to income ratio:

Debt/Income = National Debt/GDP = (23/21.3) X 100 = 108%

This is 2.5 times what mortgagors say is the absolute high for obtaining a mortgage for your new home. It is also 1.4 times the debt-to-GDP ratio set by the World Bank as the tipping point for nations.

The national debt is basically a mortgage on our Constitutional Republic and We the People are the mortgagee not the mortgagor. It is a fallacy that the debt does not matter because we owe it to ourselves. To better understand this fallacy see Clichés of Socialism #6.

We the People have elected our Representatives, Senators, and the President to be fiduciaries of the national debt. We expect them to be statesmen and manage it properly, but alas, they are politicians and failing miserably! They, the politicians of both parties, seem bent on bankrupting our Constitutional Republic.

Debt is a terrible master. It can make slaves of debtors stealthily. And in the case of We the People, it can destroy rather than secure “the Blessings of Liberty to ourselves and our Posterity.”

From the administrations of George Washington through William Howard Taft (1789-1913) our nation accumulated only $2.9 Billion in debt. This was a period of 124 years. It was during the administrations of Woodrow Wilson that the Liberty Bond Acts were passed. These Acts established what we now call the Debt Ceiling. The following outlines the devastating effect of these Acts and their successors over the past 107 years:

28 Woodrow Wilson (D, 1913-1921) . . . . . . $2.9B + 21B = $23.9B
29 Warren G Harding (R, 1921-1923) . . . . . $23.9B – 3B = $21B
30 Calvin Coolidge (R,1923-1929 ) . . . . . . . $21B – 5B = $16B

The Harding and Coolidge administrations are the ONLY two administrations to ever REDUCE the National Debt! What follows tabulates the failings of BOTH parties.

31 Herbert Hoover (R, 1929-1933) . . . . . . . $16B + 6B = $22B
32 Franklin D Roosevelt (D, 1933-1945) . . . $22B + 236B = $258B
33 Harry S Truman (D, 1945-1953) . . . . . . . $258B + 7B = $265B
34 Dwight D Eisenhower (R, 1953-1961) . . $265B + 23B = $288B
35 John F Kennedy (D, 1961-1963) . . . . . . . $288B + 23B = $311B
36 Lyndon B Johnson (D, 1963-1969) . . . . . $311B + 42B = $353B
37 Richard M Nixon (R, 1969-1974) . . . . . . $353B + 121B = $474B
38 Gerald R Ford (R, 1974-1977) . . . . . . . . . $474B + 224B = $698B
39 Jimmy Carter (D, 1977-1981) . . . . . . . . . $698B + 299B = $997B
40 Ronald Reagan (R, 1981-1989) . . . . . . . . $997B + 1.86T = $2.837T
41 George H W Bush (R, 1989-1993) . . . . . $2.837T + 1.554T = $4.4T
42 William Clinton (D, 1993-2001) . . . . . . . $4.4T + 1.4T = $5.8T
43 George W Bush (R, 2001-2009 ) . . . . . . . $5.8T + 5.849T = $11.657T
44 Barak Obama (D, 2009-2017 ) . . . . . . . . $11.657T + 8.588T = $20.245T

45 Donald Trump (R, 2017-20xx ) As projected in the FY 2020 budget, Trump plans to add $5.088 Trillion to the debt in his first term. That’s a 30 percent increase from the $20.245 trillion debt at the end of Obama’s last budget for FY 2017. If he remains in office for a second term, he plans to add $9.1 trillion. Bear in mind that President Trump promised to eliminate the debt during his campaign!

During the first 124 years of our Constitutional Republic, We the People accumulated $2.9 Billion in debt. In the ensuing 107 years this debt has grown to nearly $23 Trillion. That is an increase of nearly 8000%. It is past time for the Congress and the President, our fiduciaries, to balance the budget and get our fiscal house in order. It will be painful for ALL of us, but it must be done!

May God Bless and Save the United States of America —
Our Constitutional Republic !