Obamanomics in the real world – deficit

The CBO brings a little reality to the Hope and Dreams machine (HT: James).

Deficit-chart

This article has 4 comments

  1. Hi Daniel
    The graph you posted is misleading because it isn’t scaled as a percentage of GDP and isn’t corrected for inflation. This overstates the relative size of the stimulus.
    your friend
    Keith

  2. It's raw dollars. Doesnt' claim to be anything else.
    That certainly might be "misleading" if someone had put "corrected for inflation."
    Do you happen to have a chart that does? I'd love to see it. :) I don't think it would help you. (hint: compare the current raw to the most recent years… would "adjusting for inflation and GDP" make a difference?)
    Cheers.

  3. Oops, found one:
    http://www.heritage.org/research/budget/images/b2
    Does that help?
    Oh, and another that looks at that "as a % of GDP" angle…
    http://4.bp.blogspot.com/_5aAsxFJOeMw/SiS5NFM5bEI
    Perhaps you can find others?

  4. hi James:
    Since GDP was much smaller during WW II than it is today, a deficit that is small in raw dollars back then translates to a much bigger relative deficit today. THAT is the appropriate comparison. If Bill gates borrows a million dollars, his increased debt is much less than if I borrowed a fiver.
    your friend
    Keith