What happened to the Federal surplus? Why was there so much spending from 2001 on?

Question

I'm looking at this and trying to figure out why so much spending by a "conservative" Prez and congress? any expertise, opinions?
http://www.publicagenda.org/issues/factfiles_detail.cfm?issue_type=federal_budget&list=3

Answer 1

1) 2000-2001 recession reduced tax revenues.

2) 9/11 happened. Regardless of whether we invaded Iraq, the military spending in Afghanistan increased the deficit.

3) Entitlement spending on social security and medicare increased dramatically. No administration has control over these items except for the ones who increase payouts (prior to 2000)

4) Bush and the Republican Congress were not Conservative with regard to discretionary spending.

Answer 2

There was a small surplus at the end of the Clinton administration (although it's hard to call it an actual surplus when there was still a huge national debt), and Bush handed all of it out as a tax refund. Apparently neocons don't believe in spending any money they actually have. They want all of it to be borrowed. As I've said many times, neocons are not conventional conservatives. They're a whole new breed taking Reagan's voodoo economics to new extremes. They don't care how much they spend as long as they don't raise taxes to do it, and they seem to be too stupid to realize that they can't go on borrowing trillions of dollars forever.

Yes, as others have pointed out, what Clinton left wasn't truly a surplus because it didn't even scratch the surface of the national debt, but his was the only administration in the past few decades that didn't spend vastly more than it took in in taxes. By cutting unnecessary spending, they were able to pay all current expenses out of current taxes with a little left at the end of the year.

Answer 3

The Federal surplus was caused by President Clinton when he ransacked the military, shutdown bases, and crippled the intelligence agency.

I'll admit that it seemed like a good idea at the time, but in retrospect, it was pretty foolish. The Federal surplus made conditions favorable for terrorist attacks.

Also, President Bush is a very poor businessman. He has been maxing out US debt, making incoherent tax cuts, throwing cash into a war before considering strategy, and creating the sloppy prescription medicare program. Don't forget about all of the Republican Congress and Senate budget earmarks!

That is how you go from Federal surplus to Federal deficit.

Answer 4

And there hasn't been a conservative president since the 1800s.

Any 'surplus' they have discussed is an illusion, the budget has never balanced between income, expenses, and future liabilities. Usually, they talk about deficit and surplus in terms of income vs. immediate expense, and tend to ignore the trillions of dollars of promises made to social security and medicare.

Answer 5

buying into the surplus rhetoric?

believing a legacy hungry convicted liar's creative accounting
when he had burned the Strategic Oil Reserve..which had to be refilled by law..

earmarked millions of dollars of new spending into the military budget of the following year..after realizing how badly we needed it

failed to figure the cursory 4% raises to Federal Union memebers that Bush had to postpone..because accounting by Clinton was so loosely interpreted.

and that was what was on the top of my head.

Don't get me wrong..Bush has failed to do the right thing and
has alienated people over his admistrations spending..but most is going to security issues..that Clinton never encountered..and you know in DC..the security of them comes way before the rest of us peons.

Answer 6

DUH!
What surplus are you referring to?
The last one I remember was under President Truman. 1946-1947. He paid off more of the national debt than any other president. The debt has increased ever since and has existed since George Washington, who left a $75,000.00 debt.

Is there truly a "surplus" when the government borrows money every year?
If you're referring to the "surplus" "created" by the Clinton presidency, Ahhhhhhhhhhh! The debt increased $900,000.00 when he left office.

Answer 7

It was transferred to Halliburton, which still has not accounted for the billions of dollars for which nobody from the GSA can find any tangible work.

War is expensive, especially when the objective is to funnel as much of the budget at possible into the pockets of the National Command Authority and his running dogs.

Answer 8

Their hasn't been a surplus since the mid 1930's

Answer 9

That was ac projected surplus and it was well spent! I don't think much of it come from your side so it was our money not yours