Tuesday, August 04, 2015

Debt as a Percentage of GDP

United States Debt as a Percentage of GDP (1940-2012)

Of course the federal debt increased as a percentage of GDP during World War II, and we as a nation paid off the dept after the war. There was a fairly long run with the debt at some thirty percent of GDP. Along came the Reagan revolution and the debt increased. Clinton enjoyed the end of the Cold War and was able to balance the budget as the economy continued to grow; thus he saw a decline of federal debt as a percentage of GDP. Bush II's administration saw two long wars that we are still paying for, and the beginning of the Great Recession. The policies that successfully pulled our economy back and restored employment increased the debt to GDP ratio.

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