Fact-checking Michele Bachmann’s Fiscal Flubbery
Context matters a lot when you use numbers. In this case, Bachmann creates a false impression by using figures from a half-century ago without adjusting for inflation or other factors.
So, 31 cents in 1961 actually translates to about $2.25 in today’s dollars. That’s still cheaper than a gallon of gas today — about $3.64 nationwide — but not 10 times cheaper.
There’s a similar problem with Bachmann’s reference to $300 billion in national debt. That sounds puny compared to today’s $14 trillion in debt, but the right way to measure debt is as a percentage of the gross domestic product, which is the broadest measure of the nation’s economy.
According to the historical tables of the White House budget office (table 7.1), $300 billion was 55 percent of GDP in 1961.
As of June 23, the total debt was $14.34 trillion, according to the Treasury Department debt meter. Meanwhile, the gross domestic product, as of March 31, was $15.02 trillion, according to the Commerce Department. That’s a ratio of 96 percent, which is certainly pretty bad, but again, not as dramatic a difference as Bachmann suggested.
In both of these cases, Bachmann could have made valid points about gasoline prices and the debt without resorting to using out-of-context figures.