Reagan (1981-88) with lowered tax rates could not keep federal spending growth under 5%. By the end of Bush the Elder's term (1992) the growth in federal spending took off like a rocket. Clinton (1993-2000) raised the marginal rate and federal spending growth dropped to 3%. Bush Junior (2001-2008) lowered taxes leading to an out of control spending growth leading to the Big Crash of 2008 (notice precipitous drop in GDP). Obama took the rein on January 2009 and GDP growth recovered strongly. The latest report on expense growth stated a tiny 1.1% rate.
The following chart shows that the deficit is declining under Obama. Notice a very high spending increase under Bush Jr (2001-08] and the surplus under Clinton (1993-2000). It is my thought that public works programs could start bringing the deficit down further.
INFLATION-ADJUSTED DOLLARS (2012)
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