Wednesday, January 27, 2010
Isn't this a pretty picture, eh? The lines depict the national government's revenues and outlays as a percentage of gross domestic product (GDP). This is from a report by the Congressional Budget Office. The CBO's analysis suggests that the deficit, the amount the national government chooses to borrow this budget year, will again represent about 10% of GDP. Check out the dotted lines which depict average revenues and outlays, and which suggest over the past 4 decades a deficit, on average, of about 2-3% of GDP. It looks a bit like something has changed. Have the preferences of the voters has changed?