The Truth About the Deficit: It’s Shrinking Faster Than Anytime Since the End of WWII
The problem isn’t the deficit, which has fallen faster over the past three years than it has since the end of World War II, but employment, says economic analyst Jed Graham. So let’s not go down the path of Europe and apply unneeded austerity measures that plunge us back into recession.
Believe it or not, the federal deficit has fallen faster over the past three years than it has in any such stretch since demobilization from World War II.
In fact, outside of that post-WWII era, the only time the deficit has fallen faster was when the economy relapsed in 1937, turning the Great Depression into a decade-long affair.
…From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP.
