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Posted by Beal on 03/23/07 22:00
On Mar 23, 2:07 pm, "Martin McPhillips" <nos...@nospam.com> wrote:
> "Useful Info" <useful_...@yahoo.com> wrote in message
>
> news:1174647792.159583.222060@n59g2000hsh.googlegroups.com...
>
> > Congress Sets New Federal Debt Limit: $9 Trillion
>
> > Full story here:
> > http://muvy.org/
>
> You could also say that "Bush has added
> (app.) $75 trillion to the GDP," which
> irons that debt out to about 4% of GDP,
> nothing remarkable.
Actually this percentage works out for the on-budget deficit, not the
debt. The on-budget deficit sat at 4% of GDP in 2005 and fell to 3.3%
in 2006. It will also almost certainly be lower once 2007 closes.
Likewise, the total budget deficit hit as high as 3.6% GDP in 2004 and
fell to 1.9% by 2006. It will also fall even more this year. Under
current tax policy, if the economy stayed out of recession for another
few years, the deficit would likely turn in to a surplus again, just
like it did for Clinton. Any president lucky enough to take office
just as the economy is recovering from a recession and then preside
while the economy continues to grow almost the entire time he governs
will see a massive reduction in the deficit.
It took 7 to 8 years of uninterrupted economic growth for us to hit a
surplus after the previous recession. We have only seen data for
about 5 years following the 2001 recession.
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