Flashback to 2001: The U.S. Govt. Starts Borrowing Money After Surplus

Jul 27, 2011 5:58pm

ABC's Z. Byron Wolf (@zbyronwolf) reports:

We’re just about exactly ten years from the moment when projected government surpluses from the Republican Congress and the Clinton administration turned again into deficits. The year was 2001 and the economy was flagging after the Internet bubble.

President George W. Bush and Republicans in Congress (with help from Democrats) enacted an ambitious tax cut package in June. And by the end of July the Treasury Department was mailing out tax rebate checks. On Aug. 1, 2001, Treasury officials announced they would be borrowing $51 billion to pay bills.

The total outstanding public debt on on July 31, 2001 was about $5.7 trillion. The total outstanding debt today – more than $14.3 Trillion.

Watch the July 31, 2001 World News report, in which the numbers now seem a little quaint: 

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