<P> Economist Mike Kimel has noted that the former Democratic Presidents (Bill Clinton, Jimmy Carter, Lyndon B. Johnson, John F. Kennedy, and Harry S. Truman) all reduced public debt as a share of GDP, while the last four Republican Presidents (George W. Bush, George H.W. Bush, Ronald Reagan and Gerald Ford) all oversaw an increase in the country's indebtedness . Economic historian J. Bradford DeLong, observed a contrast not so much between Republicans and Democrats but between Democrats and "old - style Republicans (Eisenhower and Nixon)" on one hand (decreasing debt) and "new - style Republicans" on the other (increasing debt). David Stockman, former director of the Office of Management and Budget, blamed the "ideological tax - cutters" of the Reagan administration for the increase of national debt during the 1980s . Former Treasury official Bruce Bartlett attributed the increase in the national debt since the 1980s to the policy of "starve the beast". While noting that George H.W. Bush's budget deal in 1990 was one of the reasons for improvement of the fiscal situation in 1990s, Bartlett was highly critical of George W. Bush for creating budget deficits by reducing tax rates and increasing spending in the early 2000s . </P> <P> Public debt is the cumulative result of budget deficits; that is, government spending exceeding revenues . </P> <P> According to the Congressional Budget Office, the United States last had a budget surplus during fiscal year 2001 . From fiscal years 2001 to 2009, spending increased by 6.5% of gross domestic product (from 18.2% to 24.7%) while taxes declined by 4.7% of GDP (from 19.5% to 14.8%). Spending increases (expressed as percentage of GDP) were in the following areas: Medicare and Medicaid (1.7%), defense (1.6%), income security such as unemployment benefits and food stamps (1.4%), Social Security (0.6%) and all other categories (1.2%). Revenue reductions were individual income taxes (− 3.3%), payroll taxes (− 0.5%), corporate income taxes (− 0.5%) and other (− 0.4%). </P> <P> The 2009 spending level was the highest relative to GDP in 40 years, while the tax receipts were the lowest relative to GDP in 40 years . The next highest spending year was 1985 (22.8%), while the next lowest tax year was 2004 (16.1%). </P>

When was the last time the us had a budget surplus