Daily Archives: February 13, 2013

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It’s over: the “out of control spending” myth revealed

As promised, here’s the The One Graph that proves for a fact that America has a revenue problem, not a spending problem. The blue line represents federal spending, the blue line federal tax revenue, from 1990 to the end of 2012:

Spending & RevenueClick the graph to enlarge.

You can clearly see the Clinton-era budget surplus in the late ’90s, George W. Bush’s tax cuts choking off revenue creating (then) massive budget deficits, and then the Lesser Depression. Unlike the early 1990s and early 2000s recessions, revenue fell off a cliff and spending increased at the same time. But spending didn’t increase drastically. If you take spending from 2002 through about 2007, and then project it through 2013, you get this:

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