Dear Editor:
The most recent recession was 18 months in length, from December 2007 through June 2009. The two previous recessions were each 16 months long. One from July 1981 through November 1982 and the other from November 1973 through March 1975. Most of the following information comes from Obama's FY2017 budget proposal. Dollar figures are in 2009 chained dollars to adjust for the impact of inflation.
In FY1973 the federal government spent an amount equal to 18.1 percent of GDP, the annual deficit was 1.1 percent of GDP and the national debt equaled 34.4 percent of GDP. Five years after the start of the recession, FY1978, the GDP had grown by 16.2 percent, the annual deficit was 2.6 percent of GDP and the national debt stood at 34.1 percent of GDP
In FY1981 the feds spent 21.6 percent of GDP, the annual deficit was 2.5 percent of GDP and the national debt stood at 31.7 percent of GDP. Five years after the start of the recession, FY1986, the GDP had grown by 18.4 percent, the annual deficit was 4.9 percent of GDP and the national debt equaled 46.7 percent of GDP.
In FY2007 the feds spent 19.1 percent of GDP, the annual deficit was 1.1 percent of GDP and the national debt equaled 62.5 percent of GDP. NINE years after the start of the recession, FY2016, it is estimated that the GDP will have grown by a pathetic 11.9 percent, the annual deficit will be a 3.3 percent of GDP and the national debt will have skyrocketed to 105 percent of GDP.
There is much rhetoric about the impact of national defense, Social Security and Medicare spending on the federal budget. Removing them from the spending figures reveals the following: 1973 per capita spending $2,329, 1981 per capita spending $3,401, 2007 per capita spending $4,189 and 2016 per capita spending $4,891.
Remember, these figures are adjusted to negate the impact of inflation. Without considering the impact of national defense, Social Security nor Medicare, from 1973 through 2007 federal per capita spending increased 80 percent, and from 2007 through 2016 it is projected to increase another 17 percent. How much more "help," control, from the feds can we afford?
It is not an income problem, government receipts (tax collections) have increased by over 11 percent since 2007. How many of your incomes have increased 11 percent more than inflation during this period?