A Trillion Here, A Trillion There, And Pretty Soon You’re Talking Real Money

Over the past 15 years, federal-budget numbers have escalated to the point of numbing most Americans with their incomprehensible magnitude. But the laws of economics have not changed. If we want bold spending expansions, then get ready for bold new taxes (or Federal Reserve inflation) when the borrowing party inevitably ends. (National Review)

Look at the legislative responses to economic collapses. Between 1930 and 1940, Presidents Herbert Hoover and Franklin Roosevelt increased spending by 6 percent of GDP. During subsequent recessions, stimulus legislation typically approximated one percent of GDP. The dam weakened during the Great Recession, when a staggering $1.7 trillion in cumulative (and often bipartisan) stimulus legislation enacted between 2008 and 2013 amounted to approximately three percent of the larger multi-year GDP (and brought a recovery even weaker than the Obama White House’s “zero-stimulus” projection).
Compare those figures to the current recession, during which Washington has enacted $3.4 trillion in relief — and Democrats are pushing for $1.9 trillion more. That would total an unprecedented 26 percent of GDP in relief over 12 months