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Nancy Pelosi’s Debt Chart, which is a work of pure fiction, wins our highest Four Pinocchio rating.
Pelosi’s Budget Chart from last May is back and it contains the debunked lies which have already been exposed by Politifact and WaPo. The mathematically bizarre chart is traveling around the twitterverse and the world of Facebook once again.
In the erroneous chart which follows, Pelosi has the two Bushs’ and Reagan increasing the debt dramatically more than Clinton and Obama.
The chart had an egregious mathematical error which led to the chart being revised by Pelosi’s braniacs but the revised chart was still bogus.
It’s so out of the realm of reality that Politifact gave the revised chart a pants on fire rating.
The chart used data from one year after Obama took office which leaves out the Stimulus and the half of TARP that he spent and puts it all on Bush. It also does not account for time in office. They compared Presidents Obama and Bush without calculating for the length of time each took to accumulate debt.
Pelosi’s chart was labeled as reflective of public debt when in fact it was based on gross debt. The chart used gross debt (debt held by the public and the government), not public debt (debt held by the public). Gross debt includes intergovernmental transactions such as bonds held by Social Security and Medicare, but public debt is the more commonly used figure of national indebtedness, at least among economists. If the chart had used public debt, Obama and Bush would have been in the same league.
More importantly, the system of measurement being used for the Pelosi chart does not reflect the GDP (Gross Domestic Product) which compensates for the amount of debt. It is not the size of the debt that is key, but rather it is the debt relative to the nation’s GDP.
If the numbers are adjusted to reflect the GDP, the accurate chart is –
Reagan: Up 14.9 percentage points
George H.W. Bush: Up 7.1 percentage points
Clinton: Down 13.4 percentage points
George W. Bush: Up 5.6 percentage points
Obama: Up 24.6 percentage points (through December 2010 only)
By this measurement, Obama is the undisputed debt Czar, which is the opposite of what Pelosi’s chart portrays.
Pelosi’s people said that the information was taken from the U.S. Treasury, but it’s actually manipulated data from the U.S. Treasury. Click here to read the story at WaPo.