May 7, 2012
Found this chart on Barry Ritholz's blog who reprinted analysis work done by Chris Turner to rebut some opinions and statements in April by Paul Krugman, who favors yet more government deficit spending. Turner's full analysis is here at the Ritholz blog.
My bottom line: Government spending has been out of control since 1978 and Congress is to blame. It's easier to target Presidents, but Congress is the real culprit. They refuse to make the hard choices and persuade the American people of their necessity. Instead, they do everything possible to retain/gain political power rather than address the problems.
Is it any wonder the American public's approval rating of the job Congress is doing is at an all time low of ~18%?
The record of the last 4 years is crystal clear to me. The massive stimulus spending triggered by the near meltdown of the economy in 2008 caused by a combination of extraordinary risky behavior by Wall Street and failed government policies and regulation has failed to resolve the economic doldrums while at the same time creating massive and unsustainable debt. This debt will likely be resolved by devaluing the currency in the future with massive consequences. It cannot possibly be paid off even by our great-great grandchildren.