From Surplus to $40 Trillion Debt in One Generation

Friday, August 21, 2026

In 2000, we ran a surplus budget. One generation later, we're $40 Trillion in debt, and the annual service on that debt is now more than we spend on Defense.

Posted by Danforth at 03:19 AM | 13 COMMENTS | permalink | Comment on This Entry |

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Surprise, surprise! The authors seem to trace a large percentage to tax cuts.

#1 | Posted by Danforth at 2026-08-21 03:20 AM | Reply | Newsworthy 1

Maybe this is a good time to bring up the fact trillions of dollars of tax cuts were expiring, and the OBBB extended them.

And, of course, whenever you're running a deficit budget, and choose to extend otherwise expiring tax cuts, that represents 100% new, additional borrowing. Extending the expiring cuts will cost over $2 trillion, plus service costs, of course.

All newly borrowed, and almost all to give away in tax cuts to the world's wealthiest.

#2 | Posted by Danforth at 2026-08-21 03:24 AM | Reply | Newsworthy 1

Almost entirely traceable to Republican policies and blunders.

#3 | Posted by jpw at 2026-08-21 06:48 AM | Reply | Newsworthy 2

the annual service on that debt is now more than we spend on Defense.

Been saying this since I arrived on this site 5yrs ago. But neither side wants to fix the problem, one just raise taxes, the other stop spending.
Neither will happen.

US just raised most revenue in its history, US just spent more than it ever had due to mandatory spending.

Never heard of this ridiculous premise framing it as 0 to a 40 trillion though.
Must be that Danforth math at work. The US already owed 4-6trillion.

The US never stopped selling treasuries, despite the supposed "surplus."

Boomers always thinking its everyone else's fault. Boomers it's you, and only you, the spending spree started under you and hasn't stopped under you.

#4 | Posted by oneironaut at 2026-08-21 08:45 AM | Reply

"Never heard of this ridiculous premise framing it as 0 to a 40 trillion though."

You're correct. I framed it wrong. I meant to mean we were on track towards zero (Clinton left True Surplus Budgets for Dubya), but Republicans, led by Cheney and Dubya, reset America's fiscal sights from surpluses as far as the eye could see, to, at that time, the largest deficits known to man since the dawn of time.

Since then, Republicans have refused at every turn to balance revenue with spending. The math basically works out that the deficit can be directly connected to borrowing new money to give it away for tax cuts.

#5 | Posted by Danforth at 2026-08-21 10:45 AM | Reply

"The US never stopped selling treasuries, despite the supposed "surplus.""

Not the barometer, Einstein.

#6 | Posted by Danforth at 2026-08-21 10:47 AM | Reply

Boomers always thinking its everyone else's fault. Boomers it's you, and only you, the spending spree started under you and hasn't stopped under you.

#4 | POSTED BY ONEIRONAUT

People try to put us d-down (Talkin' 'bout my generation)
Just because we get around (Talkin' 'bout my generation)
Things they do look awful c-c-cold (Talkin' 'bout my generation)
I hope I die before I get old (Talkin' 'bout my generation)

This is my generation

This is my generation, baby

Why don't you all f-fade away (Talkin' 'bout my generation)
And don't try to dig what we all s-s-say (Talkin' 'bout my generation)
I'm not trying to cause a big s-s-sensation (Talkin' 'bout my generation)
I'm just talkin' 'bout my g-g-g-generation (Talkin' 'bout my generation)

This is my generation

This is my generation, baby

My, my, my generation

#7 | Posted by donnerboy at 2026-08-21 11:14 AM | Reply

"Boomers always thinking its everyone else's fault"

The math is clear. So is the history: the pivotal moment was when Cheney and Dubya, without a single (D) vote, reset America's fiscal sights from Surplusville to Debtsylvania.

#8 | Posted by Danforth at 2026-08-21 11:26 AM | Reply | Newsworthy 1

"Boomers it's you, and only you.."

Trumpy is a boomer.

Now I have to report you to the Ministry of MAGA.

There goes your visa and your pardon.

#9 | Posted by donnerboy at 2026-08-21 11:30 AM | Reply

"Boomers it's you, and only you."

Sometimes folks admit they don't understand the equation in indirect ways.

#10 | Posted by Danforth at 2026-08-21 11:41 AM | Reply

30% of that $40 trillion is just Donald Trump.

For you math illiterates, that's $12 trillion due to Donald Trump.

I remember when conservatives pretended they cared about the debt.

It's clear the only thing they care about is preventing poor Americans from benefitting from our taxes.

Happy extinction, America!

#11 | Posted by ClownShack at 2026-08-21 11:50 AM | Reply

I remember when conservatives pretended they cared about the debt.

That would be when a democrat controlled the White House.

Republicans only care about the debt when Dems have the reigns so they can use it to block any and all democratic public welfare and healthcare programs designed to help Americans.

#12 | Posted by donnerboy at 2026-08-21 12:16 PM | Reply

I think I heard somewhere that once (in the Before Times) there was once a president who did balance the budget and was actually able to reduce the deficit! So it's possible!

Hmmm. Now who was that guy ? Wonder how he did it!?!

Oh well must be just another myth lost in the sands of Time and now we will never know how it was done.

#13 | Posted by donnerboy at 2026-08-21 12:45 PM | Reply