Community | January 27, 2009 | 0 comments

Isn’t $1.2 Trillion Enough Stimulus?

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unitedliberty
Never since 1945, when the nation was resorting to billboards in order to raise war-financing, has the United States had a budget deficit greater than ~ 6% of GDP, yet even using very optimistic Congressional forecasts we are on track to reach 8.3% of GDP prior to the financing of a stimulus package which will certainly push Congressional estimates above 10% of GDP. Making less optimistic assumptions on economic output and tax revenue, combined with a stimulus package that comes in on the larger side, we could potentially see a budget deficit of up to 14% of GDP this year.
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