Well that banking mess became everyones problems because several companies had run themselves into the ground, and the tax payers had to bail them out. Once they were bailed out it was back to business as usual, exorbitant CEO and Executive pay and a suffering mainstreet.
The government bankrupted itself due to tax cuts paid with borrowed money. It does not make sense to borrow money, to devoid the citizens from paying taxes.
When Romney tells us about his tax cut plan, he is not running on tax cuts. He is running on forced future tax increases and spending cuts. The Bush tax cuts were not offset with a tax increase or a spending cut. THe debt more than doubled in his tenure as a result.
The government is bankrupt because Starve the Beast fiscal theory completely failed at lowering government spending to mee the reduced revenues from passing tax cuts not offset with tax increases or spending cuts.
This is one of the best articles I ever read informing me about the budgetary situation of the country, and how we found ourselves in this mess.
Mixed with this graph it made perfect sense to me.
What the graph shows it the country did not begin to have major debt problems until Reagan entered office. While Clinton did help reduce our debt problem it again got exacerbated under the next 8 years of Republican leadership under George W Bush.
THe problem with the debt is we pay compound interest on it. So if the debt is $10,000,000,000 at a 5% borrowing rate, withing 15 years we will owe $20,000,000,000 on it. Thats a rough example, but unless something drastic is done, it will run away from us, out of control similar to greece. While some Austerity is called for, we definitely need to throw out failed policies like Starve the Beast that brought about the problem in the first place.
Romney has a tax cut plan for this country, and he is hoping, HOPING that there will be exponential GDP growth as a direct cause of his tax cuts. If the GDP growth is paltry or non-existant with further tax cutting in place, like it was under Reagan and GWB, we can expect a mountain of debt bigger than Mt. Everest to be left behind by his presidency.