The National Debt Under Every US President Since WW2

Though he was elected to office on a platform of tax cuts and reduced government spending, Ronald Reagan was the first American president in history to increase the country’s total debt by more than a trillion dollars. During the Reagan years, federal debt ballooned by 186.4%, from $997.9 billion to $2.9 trillion.

While Reagan did cut corporate income taxes, he increased payroll taxes — and while he marginally cut social welfare spending, he expanded defense spending considerably. Additionally, Reagan’s easing of banking regulations ultimately brought about the savings and loan crisis. Reagan era policies ushered in a period of strong economic expansion that peaked with a 7.2% annual GDP growth rate in 1984 — a high no American president has achieved since.

When President George H.W. Bush took office, reducing the federal deficit without raising taxes was a leading priority for his administration. As a result, he was limited in his willingness and ability to enact major new programs, opting instead to maintain the status quo left by the Reagan administration.

However, the savings and loan crisis led to a recession, reducing federal revenue. On top of that, to save the industry, the Bush White House issued a $100 billion bailout. Ultimately, in a move that many say cost him the 1992 election, Bush went back on his word and raised taxes to maintain a level of government revenue. During his single term in office, Bush added $1.6 trillion to the federal debt, a 54.4% increase.

Bill Clinton’s two terms in the White House marked an era of unprecedented economic prosperity in the United States. Under the Clinton administration, unemployment hit its lowest level in decades, inflation declined to a 30-year low, and homeownership soared to all-time highs. Clinton also achieved a budget surplus in the four final fiscal years he held office.

Due in part to the budget surplus, the federal debt rose by 31.6% during the Clinton years, a far smaller increase than most presidents in the last century. Clinton’s ability to balance the budget for several years of his presidency was due in part to policies that raised taxes and cut spending programs. Rapid economic growth also led to a surge in tax revenue, as the U.S. economy expanded each year Clinton was in office, from between 2.7% to 4.8%, depending on the year.

George W. Bush took the oath of office in January 2001, less than one year before the terrorist attacks of Sept. 11. The attacks ultimately led to the Bush administration’s war on terror and the creation of the U.S. Department of Homeland Security.

Bush’s economic initiatives began with a $1.35 trillion tax cut that was accompanied by an increase in entitlement and discretionary spending as well as massive military engagements in Afghanistan and the Middle East. More tax cuts followed in 2003 and 2006, ending the budgetary surpluses of the Clinton years. During the Bush presidency, government debt more than doubled from $5.8 trillion in 2001 to $11.9 trillion in 2009.

No American president added more, monetarily, to the U.S. debt than Barack Obama. Over his eight years in office, the federal debt climbed by $8.3 trillion. However, in relative terms, the 70% debt increase during his administration was only the fourth largest in the last 100 years.

Obama took office in 2009, a time when the U.S. economy was in the midst of the Great Recession following the financial crisis that was triggered in 2007. At the time, unemployment soared, the housing market collapsed, the global economy was also in recession, and financial institutions were on the brink of failure. In addition to the $700 billion relief program authorized under the Bush administration, Obama passed another $800 billion stimulus package. After contracting 2.5% in 2009, the U.S. economy grew every year of Obama’s presidency. Major policy changes during the Obama years included Medicaid expansion, the Affordable Care Act, strengthened regulations on financial institutions, and the end of the Iraq War.