With this month being named after the Roman diety Janus, the god of time (among other things), I thought I would take this opportunity to use this time to go through some of my veridictions (my practice of verifying predictions).
Way back in 2000 (December 29 to be exact), then-President Bill Clinton made the remark that the entire public debt (estimated at $3 trillion at that time) could be paid off by 2010.
Fast forward a decade and on December 29, 2010, the amount of federal government debt held by the public was $9.327 trillion – an increase of over 200%.
So how did Mr. Clinton get it wrong?
Well, according to Bloomberg News article I linked to, Clinton did add some caveats to his prediction including:
…if federal spending increases at the rate of inflation and Congress adds no large spending programs [and] there will be no big tax cuts, such as the $1.3-trillion plan proposed by President-elect George W. Bush.
Since this trifecta of assumptions occured, it’s no wonder we’re still in the red ink.