Tuesday, February 15, 2011

Deficit is biggest as share of economy since 1945

And taxes are the lowest.

AP –
By JEANNINE AVERSA and CHRISTOPHER S. RUGABER, AP Economics Writers – 2 hrs 1 min ago
WASHINGTON – Not since World War II has the federal budget deficit made up such a big chunk of the U.S. economy. And within two or three years, economists fear the result could be sharply higher interest rates that would slow economic growth.
The budget plan President Barack Obama sent Congress on Monday foresees a record deficit of $1.65 trillion this year. That would be just under 11 percent of the $14 trillion economy — the largest proportion since 1945, when wartime spending swelled the deficit to 21.5 percent of U.S. gross domestic product.

And social services are getting less and less but we keep giving tax breaks to the rich and to corporations. Only the poor and working class suffer under these conditions.

Thanks President Obama!

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