Thursday, January 08, 2009

A reason for pause


The chart shows expenditures as a percentage of GDP, the RED is federal expenditures under four conditions. The purple adds in the 2006 figures for State and Local Expenditures, less transfer payments. The first column is 2006 levels. The second is the highest level achieved previously (WWII). The next two columns estimate the current budget and the current budget with the Obama stimulus package included. What should concern all of us is at what point do the levels of total commitment to governmental expenditure become disruptive to the private sector?

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