Monday, March 2, 2009

How Big is the Budget: Part II

While Felix looked at the deficit in terms of past budgets and the budget in terms of per household averages, to properly put it in perspective one must compare it to the earning power of the United States (i.e. GDP). Taking historical budget data from the CBO, comparing it to nominal GDP from the BEA, and assuming no GDP growth in 2009, we get the following chart showing a spike in the budget from its 18-22% range during 1969-2008, to above 25%.



The next chart details the year over year increase in the budget, as a percent of GDP. This year budget will take up a whopping 4.5% more of GDP than it did a year ago.



Source: CBO / BEA