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Discussion: (4 comments)

  1. This is news? Anyone with a rudimentary knowledge of economic history knew this years ago.

  2. Tom Sullivan

    “Anyone have use for an extra $7 trillion?”

    That’s just $7 trillion lost in the last year’s output. There is an output gap in all 23 years, so the accumulation lost over all those years is more like $80 trillion.

  3. David Zimmerman

    If they did away with base line budgeting, it would dramatic. Why it got introduced in the first place is a mystery. I think it was because both parties wanted government to grow. If that was what they wished for…they sure got it.

  4. Sharmarke

    In 1945, The U.S public debt was in excess of 120% of GDP. How was the economy then?

    What matters is not the debt per se, but the debt-to-GDP ratio. Thanks to a rapidly growing economy triggered by substantial public investments in the manufacturing sector and the “basic bargain” linking pay to productivity, the American economy underwent an unprecedented rate of growth for nearly 30 years.

    This growth has not been matched since.

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