Good News! ...Sort Of

When it comes to federal government spending, we are almost back to normal.  According to the Office of Management and Budget, the federal government spent 20.8% of GDP in fiscal 2013.  That is not a rosy-scenario, computer-generated prediction, but an actual count of dollars already spent. That is the lowest level since President Obama was inaugurated, and down from the peak of 24.4% in 2009 – a drop of over $600 billion in today’s dollars.  It is almost back to the pre-Obama level of 20.2% of GDP in 2008.  And it matches the 24-year average from 1975 through 1998. It is even below the Simpson-Bowles target level of 21%.  And it was accomplished about two years before even Simpson-Bowles thought it could be done. That is simply remarkable. Even more remarkable: spending priorities did not really change all that much from when George W. Bush was president. I compared spending in 2013 to spending in 2007 in terms of percentage of GDP...(Read Full Article)

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