Obamanomics in the real world – deficit

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


4 thoughts on “Obamanomics in the real world – deficit”

  1. keith johnson says:

    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

  2. James says:

    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?)

  3. James says:

    Oops, found one:
    Does that help?
    Oh, and another that looks at that "as a % of GDP" angle…
    Perhaps you can find others?

  4. keith johnson says:

    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