Is the GOP Fiscally Conservative?

*an opinion piece by CTC Panelist Rio Veradonir

As usual, debt is a central issue in the election.  The debt has grown under Obama.  In that sense, it might be good strategy for Romney to push this topic.  However, let's take a closer look at the facts.

Romney/Ryan have proposed large tax cuts across the board.  They say they will make up for the loss in revenue by cutting spending (and eliminating some tax deductions).  However, they will not be specific about which programs they plan to cut, by how much, and which deductions they will eliminate.

In order to make up for the enormous loss in revenue, a Romney/Ryan administration would need to drastically cut many programs and deductions.  The question is: will they actually cut enough - enough to not only make up for the loss in revenue but to get rid of the deficit and start paying down the debt?  If recent history is any judge, I'm betting they will not.

Low taxes is a central part of what defines "fiscal conservatism."  But equally important is responsibility.  A fiscally conservative administration should balance the budget, create a surplus, and pay down the debt.  Unfortunately, that is not at all what the three previous GOP administrations did.

When the neoconservative movement gained control of the GOP, the decades long tradition of paying down the debt stopped, and the debt began to grow, starting with the Reagan administration. By the time GHW Bush left office, the debt had grown from about 30% of GDP to about 65% of GDP - more than doubled. Remember, until Reagan took office, the debt had been shrinking for decades, through both GOP and Democratic administrations.

Clinton takes office. He balances his budget. The debt shrinks from about 65% of GDP to about about 55% of GDP.

GW Bush takes office. The debt grows from about 55% of GDP to about 85% of GDP.

Obama takes office, and the debt continues to grow to where it is now.

Let's look at this. Over the past five administrations, the debt has risen from 30% of GDP to 100% of GDP (as of Jan. 1, 2012) - over 3X what it was when Reagan took office. And Obama oversaw about 15% of that 70% increase.

Clinton actually paid it down by about 10%. So that means that Reagan and the Bushes are responsible for the other 55% of the increase, plus they are responsible for reversing Clinton's 10% decrease. So in total, Reagan and the Bushes are responsible for a 65% increase in the debt.

A 65% increase from 30% puts us at 95% of GDP.  So if neither the Clinton nor the Obama administrations had happened; if we we were left to just the devices of the previous three GOP administrations, we would have wound up in the same place anyway.

So let's just put to rest this ridiculous myth of GOP fiscal responsibility right now. Shall we?

For more information on the debt (and further discussion of why I left the GOP), please watch:
Episode 11: "Ex Republicans" - Former GOP members discuss why they left the party.

-Rio Veradonir
CTC Panelist