Recently or in a typical year, what portion of federal expenditures borrow deficit spending? Here is Figures produced by the constant Fred website operated by St. Lewis Federal Bank. The number of vertical axes can be read at a percentage. In other words, .2 is 20 %.
In 2024, 27% (more than 1/4) of all federal spendings borrowed from deficit expenses. This is not the lowest ever. In 2020, 48%of all federal expenses were borrowed from the depth of the epidemic recession. In the depth of the 2009 recession, 40%of the federal expenditures of the year were borrowed.
But before the event, you have to go back to time. In 1943, 70%of US government spending was borrowed from the depth of World War II. In 1932, 59%of government spending was borrowed from the Great Depression.
But 27%of the federal expenditures, which were borrowed in 2024, were larger than any other year, from the end of World War II. In addition, the above graph suggests a decline. In other words, the annual defects are growing due to the bad expenditure ratio, and the deficit of the good year does not pop out. Remember that 2024 was not a year of national emergency, such as infectious diseases and a big recession. It was a year when the economy increased and the unemployment rate was relatively low. Recursive political demands for tax reductions and/or expenditures are deserved to be taken by Kimlet eyes and skepticism.
