U2DMfan
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Isn't it about 75%? And from what I understand, that isn't exactly optimal.
You must be thinking of the debt?
Federal spending in FY2012 was 22% of GDP. On par with '82-'86. And basically the same as 1991. And if economic growth maintains, the current level will fall down to 21%. The number for the balanced budgets in the late 90's was 18-19%. Although I'd argue with people living longer and having so many baby boomers turn 65, that 20% is a solid number to aspire to.
FY 2012 total spending was 39.5% of GDP and the future is trending down.
Projected to be 36% by 2015. To put some perspective on that number, in 1982 and 1983, the number was 36% of GDP. In 1992 it was 37%.
From the mid-70's to 2008 it was between 32% and 37%.
So we're almost back to basically normal (modern) spending.
FTR, the balanced budget (Clinton) numbers were 32% and 33%.
But yeah, the only way to even remotely give a fair observation of history is to look at spending and revenues relative to GDP. We're absolutely going in the right direction. If economic growth ever really kicks in, growing the total pie (GDP), the % goes down. We should be just fine in terms of spending.
As for the mounting debt, I don't know. That's a ball of confusion to me in terms of how that directly affects the economy. Maybe Digi can explain that.