With no complaints or games, and with little notice, the national debt grew more than $4 trillion during George W. Bush’s Presidency. In Bush term Bush’s Debt ceiling raising was considered the biggest increase under any president in U.S history. While the Bush had tax cuts that made the national debt increase significantly, Republicans supported then Republican President George Bush over and over again. Even when the debt ceiling was raised to provide entitlement programs for Americans facing a tough time, Republicans for the most part were united in not turning their Republican President down on funding for the Housing and Economic Recovery Act. Also back then Republicans weren’t signing pledges across the country, besides the fact Bush is Republican, there was much more of a duty to serving the country soon after 9/11 rather than signing some pledge that some individual, lobbyist, or some group came up with.
On the day President Bush took office, the national debt stood at $5.727 trillion. When President Bill Clinton left office the federal budget was at least $230 billion, making it the largest in U.S. history. The Previous year was also considered a record surplus in the amount of $122.7 billion.
Bill Clinton in 2000 explained, the $5.7 trillion national debt has been reduced by $360 billion in the last three years while just in one year $223 billion was produced alone in helping to reduce the national debt.
During Bush Presidency the Debt Ceiling was raised nine times. Between January 2001 and 2004 the debt ceiling would have been three times the U.S. debt ceiling was raised in Bush’s first term when he took office in 2000. Republicans were the majority party in the House of Representative with Tom Delay majority leader and in the senate before June 2001 the Senate was 50/50 with Dick Cheney President of the Senate. Tom Daschle didn’t become leader until a Senator Jim Jeffords of Vermont switch to Independent. Unlike then and today Bush had less of a problem dealing with raising the debt ceiling. Today the stubbornness of Republicans refusing to give in and compromise on raising taxes to increase the debt ceiling besides unemployment makes for probably the big topic of the day for many days now. Their was no notice if any major news where Americans were also focused on an approaching debt ceiling crisis. Their was disagreement but it was nothing like what we see today and in-spite the fact it seems everything seems to be wrapped around the Bush tax cuts, and today we are still discussing those Bush-Tax cuts and how they should be rolled back. (Bush has left office but those tax-cuts seem a continuous legacy to problems surrounding the United States Economy.) While we have new Senate and House members to come and go, some of the same people who were there in George Bush 43 term as President in office approved the Debt Ceiling nine times.
George Bush was horrible for the American Economy with his tax cuts, but regardless the Debt Ceiling needed to be raised and their were no time for games.
One request of George Bush came the day before Christmas day in one day a measure was accepted to raise the debt ceiling.
In those proposals to raised the Debt ceiling know one should be surprised that previous to the debt ceiling being raised the day before Christmas Bush has a lot of tax cuts. These tax cuts are what Republicans considered the stimulus in stimulating the economy but as proven wrong the debt ceiling had to be raised due to the economy. We were in a war and Bush had cut them income taxes that help funded the War. The money that was spent went to defense and securities. During the summer Bush barely got the debt ceiling approved and his plans for tax-cuts increased the borrowing limit by $450 Billion. By that summer when the debt ceiling was raised the national debt increase to $6.4 trillion. For months since February 2002 the Treasury Department juggled accounts to keep the debt below $6.4 trillion which didn’t happen due to Bush’s tax cuts, which finally increase the debt ceiling to $6.4 trillion. As late as 2003 if not earlier it was definitely realized that the Bush Tax cuts in 2001 were working against the American economy. “The Bush economic plan has failed,” said Sen. Richard Durbin, D-Ill. “It has failed to revive the economy, and it’s driven us deeper into debt.” Instead of stopping the tax cuts the Republicans chose to add more tax cuts and raise the debt ceiling. In 2003 the proposal of $984 billion was considered a historical increase which brought the national debt to $7.38 trillion. However everyone expected this increase would only last till November 2004, when the debt ceiling would need to be raised again.
In 2007, Treasury Secretary Henry Paulson told Congress he expected the Debt Ceiling would be reached by October 1st. Democrats still believed and spoke out against Bush Tax cuts and the Iraq War effecting the National Debt. In September 2007 the Senate Finance Committee approved increasing the debt to $9.82 trillion. This was the fifth time since 2001 that Bush increased the Debt Ceiling.
In July 2008 George Bush signed the Housing and Economic Recovery Act, which raised the debt ceiling to $10,615 Trillion.
A: Through the Federal Housing Administration (FHA) borrowers in danger of losing their homes will be able to refinance into more affordable government-insured mortgages. The program offers government insurance to lenders who voluntarily reduce mortgages for at-risk homeowners to at least 90% of the property’s current value. http://www.hud.gov/news/recoveryactfaq.cfm
href=”http://en.wikipedia.org/wiki/Housing_and_Economic_Recovery_Act_of_2008″>Housing and Economic Recovery Act of 2008 (Pub.L. 110-289, 122 Stat. 2654, enacted July 30, 2008) (commonly referred to as HERA) designed primarily to address the subprime mortgage crisis. It authorized the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value. It was intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and injecting capital into the two large U.S. suppliers of mortgage funding. States are authorized to refinance subprime loans using mortgage revenue bonds. Enactment of the Act led to the government conservatorship of Fannie Mae and Freddie Mac.
Also under the Housing and Economic Recovery Act of 2008 it included and created in 2008 the Neighborhood Stabilazation Program that involved transferring foreclosed and abandoned properties from financial institutions nationwide to local housing organizations to promote property reuse and neighborhood stability. The Stabilization Trust also provides greater access to flexible financing for neighborhood stabilization activities.
July 2008 would not be the last time the debt ceiling was raised and still there was none of the noise and squaring off compare to what we have now, as we have less than a month to go with in reach of the August 2nd deadline. In fact while the Democrats tried to curve these tax cuts they took the high road in getting things done. Back then and just like today economist supported what the Democrats had to say about the Bush Tax cuts contributing to the need in raising the debt ceiling.
On October H.R. 24 2008 the debt ceiling was raised to $11.315 trillion.
The US Congress passed the Emergency Economic Stability Act in October 2008 to bail out the financial system and prevent systemic collapse.
Because of the Financial emergency with the Banks being bailed out, the debt ceiling was raised again which caused the debt ceiling to reach $11,315 trillion and still their would be two more times while Bush is in office the debt ceiling would be raised again. There was none of the grandstanding that Republicans are pulling now. Republicans while in office protected Bush because he was of course a Republican President.
While the AIG bailout was modified in November from previous amount given in September. AIG amount was increased to at least $27 Billion more making its total Bailout amount $150 million, on Novemner 24, 2008, the U.S. government announced it would bailout Citigroup. Citigroup (Citibank was given $300 Billion Also in November the U.S. auto Industries came to Congress seeking a bailout. In December of 2008 Congress finally approved a bailout to be given to the U.S. automakers. On December 19, 2008 George Bush announced from the White House he would approve a $17.4 million bailout to the automakers.
These latest bailouts would continue to contribute in raising the Debt ceiling by the end of December 2008.
The Congressional Research Office uses a Fiscal Calendar instead of the January thru December month calendar. But to get an estimate of the Debt Ceiling amount under George Bush I just used the regular Calendar running January to December,and I looked at the history of the bailouts, Treasury Statements, and when other increases were made instead of using the Fiscal Calendar estimate the Congressional Research Offices Uses. So Under Bush nearing when his time was over as President that the debt ceiling of $11.315 trillion (Increase after TARP) in October,would increase again and be greater than it was in on October 8, 2008; because of readjustments for AIG, a bailout of Citigroup in November and the auto bailouts that passed in December 2008.
A fiscal Calendar year starts off from July of Previous year to June of the next following year rather than the January through December we mostly associate with being the beginning of the year.