- The Big Picture - http://www.ritholtz.com/blog -
About That Ballooning Deficit . . .
Posted By Barry Ritholtz On November 21, 2012 @ 12:10 pm In Credit,Politics,Taxes and Policy | Comments Disabled
Source: IBD 
Wow, this is a rather surprising data point: “From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP .”
It is even more surprising when you consider its source is the usually conservative Investors’ Business Daily.
Here is a longer excerpt:
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.
If U.S. history offers any guide, we are already testing the speed limits of a fiscal consolidation that doesn’t risk backfiring. That’s why the best way to address the fiscal cliff likely is to postpone it.
Yet more proof that the fiscal cliff is a manufactured crisis  of minimal importance.
U.S. Deficit Shrinking At Fastest Pace Since WWII, Before Fiscal Cliff 
Investors Business Daily, 11/20/2012
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2012/11/about-that-ballooning-deficit/
URLs in this post:
 Image: http://www.ritholtz.com/blog/wp-content/uploads/2012/11/WEBcaphill01_1120_600.gif.cms_.png
 IBD: http://news.investors.com/blogs-capital-hill/112012-634082-federal-deficit-falling-fastest-since-world-war-ii.htm
 7.0% of GDP: http://www.cbo.gov/sites/default/files/cbofiles/attachments/43698-Nov-MBR.pdf
 the federal deficit has fallen faster: http://www.whitehouse.gov/omb/budget/Historicals/
 manufactured crisis: http://www.ritholtz.com/blog/2012/11/cjr-says-fiscal-cliff-is-a-cnbc-scam/
Copyright © 2008 The Big Picture. All rights reserved.