Question:

Why federal deficit (half trillion $) is compared to GDP?

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Is it because the percentages look better?

I feel it is comparing "apples and oranges"! GDP includes all economic activity, federal debt on the other hand is only part of the debt - personal, state debt is missing.

If one to compare 490 billion deficit to 3 trillion Federal budget it will be staggering 16% (as oppose to 3%)

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1 ANSWERS


  1. it is true, the deficit is at a record high numerically, but not as a ratio to GDP or inflation adjusted GDP.  Welcome to the science of spin.

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