Thursday, January 15, 2009
U.S. Gov't surpluses and deficits: An historical perspective
The Budget of the United States Gov't publication has historical tables on surpluses and deficits going back to 1789. You can access it here. Please go to page 21 of this publication to view the data.
You will notice that the most powerful periods of economic growth (post Civil War, 1920s and 1942-1946) were preceeded by massive deficit spending that occurred very rapidly.
For the economy to recover now we must see the same, perhaps in order of magnitude far greater than what is currently being proposed.