Xinhuanet reports:
The U.S. federal budget deficit soared to 569 billion dollars in the first four months of the current fiscal year, the highest on record for this period, the Treasury Department reported on Wednesday.
Rolling back that same fourth month time frame back to the mid-1980's we see just how unprecedented this truly is.
Not a surprising result in an economy in which production / employment (thus taxes) are sharply down, while stimulus / bailouts are sharply up. Looking at the 12 month change in the level of receipts and outlays over that same period, we get the following chart which must make all Keynesian's proud and conservatives shudder.
Not a surprising result in an economy in which production / employment (thus taxes) are sharply down, while stimulus / bailouts are sharply up. Looking at the 12 month change in the level of receipts and outlays over that same period, we get the following chart which must make all Keynesian's proud and conservatives shudder.
Source: Treasury
Jake,
ReplyDeleteHave you seen a longer term budget deficit chart? Also, your point is well taken: If a Keynesian stimulus is a simple matter of numbers, we must be well into a major test of its efficacy.
Don the libertarian Democrat