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
Monday, March 2, 2009
How Big is the Budget: Part II
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This is what happens when you elect irresponsible governments year after year and they dupe you to think that you can have your free lunch.
ReplyDeleteSuch as:
expensive wars being faught everywhere, lavish expenditure on "friends" in the middle east, combined with too low taxes -especially too low taxes for the rich.
Complete this mess with consumption-mania among consumers doped on "cheap" credit. PAYTIME is here and will be here for years - unfortunately. Credit will turn out not to be so cheap afterall