We’re almost there. Our national debt surpassing the gross domestic product.  All this at a time when the economy is growing far less than expected, and much slower than would be required to reduce the increasing unemployment rate.

Typically the debt has been attributed to out of control spending by the Bush administration, and the Republican controlled congress.  But let’s look a bit deeper.  Remember what happened in 2006:

Between 2004 and 2005, President Bush and the Republican controlled congress had actually managed to stabilize the debt to GDP ratio, setting up an environment where one could actually begin reducing debt on a more long term basis.  Of course, no one can actually prove intent of the lawmakers at the time, this is merely observations of data reported by the government.

Accordingly, once the Democrats took control, led by Speaker of the House Nancy Pelosi, what was their first course of action after being elected?  Iraq war troop reductions where high on the priority list, along with pulling out of Afghanistan.  It seemed like some of the real big issues that were not being tended to, or communicated to the public very well were finally going come to the forefront.

Rather take bold steps, and establish new policy, the newly elected Speaker, decided to make increasing the minimum wage their top priority, and the first bill that was to be passed. What happened between the election in November 2006, and January of 2007? Quite puzzling indeed.  I recall at the time feeling disheartened and almost duped by the elitist stance that began to take shape.  It was almost an atmosphere of China-like central planning, just less organized and very much less thought out.

Now watch the graph above from 2007 forward. Keeping in mind that budgets are passed a year in advance, the years of 2008-2010 are the real responsibility of the Democratic congress. Our debt increases from around 65% of GDP to now 95%. The massive levels of spending came into play well in advance of the near-depression phase of the decade.  Budgets were put in place in 2007 without regard to the economy, or long term sustainability.

These failed liberal principals continue to dominate the conversation in Washington.  Look no further than the Unions who have Obama’s ear.  They will not bend, and would rather see a given State or corporation go bankrupt before they actually will take any concessions.  Notice how General Motors was forced to effectively hand the company over to the Union?  It’s all part of the plan of hope and change that Obama does not care to let the rest of us in on.

What exactly is your vision for the country @BarackObama?