Monday, February 02, 2009

FDR, DEFICITS AND THE WINGNUTS

In trying to claim the New Deal didn't work, the wingnuts instead claim that it was all the spending for WW II that led us out of the Depression. I've shown below (here, here and here) and now I want to examine one implication of the wingnuts' claim. Below is a graph that shows both Federal outlays and deficits as a percentage of GDP. The graph was derived from these historical tables.


If the wingnuts are correct, then massive deficit spending pulled us out of the Depression, something they surely don't want to admit.

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