This column reports that according to the White House Office of Management and Budget (OMB), in 1930 the federal government spent 3.4 percent of gross domestic product (GDP) and federal taxes took in 4.2 percent of GDP (there was a .8% surplus!)
In 1940 federal spending was 9.8 percent of GDP, federal taxes were 6.8 percent and we borrowed the 3% difference.
In 2009, it is estimated that the federal government will spend 20.7 percent of GDP while taking in 18 percent of GDP in taxes, and we’ll borrow the 2.7 percent difference.
Wonder what % it will be in four years? Or in 50?