Taps Coogan – August 28th 2020

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Via Bloomberg, the following chart shows the budget deficit as a percent of GDP since 1976. It is important to note that the budget deficit does not include off budget spending nor the circular funding of programs like Social Security and Medicare. In recent years, the annual increase in the national debt was about 30% higher than the stated budget deficit. Nonetheless, the current budget deficit is the highest since World War II.

In case you’re wondering, 15% of GDP works out to be about $3 trillion. The final number for Fiscal Year 2020, which ends in September, is likely to be even higher.

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