Jul
29
2009

Obamanomics in the real world – deficit

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

Deficit-chart

4 Comments+ Add Comment

  • 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

  • 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.

  • 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?

  • 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

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