"The peace dividend at the end of the Cold War combined with the booming economy of the 1990s (and some tech-bubble tax receipts) to create an unexpected dilemma in 2000: what to do with the budget surpluses that were forecast for years to come? ...But a decade later, we're back in debt madness. The causes of this reversal are not a mystery: tax cuts, two wars, a new Medicare drug benefit, two recessions, massive bailouts and a huge stimulus package -- very little of it paid for in any conventional sense." Joel Achenbach, The Washington Post.
Hoven's Index for April 30, 2010
Federal spending as a percent of GDP:
1970-2000 average (pre-Bush): 20.9% of GDP
2001-2008 average (Bush): 19.9% of GDP
Federal deficits as a percent of GDP:
1970-2000 average (pre-Bush): 2.5% of GDP
2001-2008 average (Bush): 2.0% of GDP
CBO's estimate of average deficit over 2009-2016 (post-Bush): 6.6% of GDP.
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