Spending as a Percent of GDP

I've long felt that those (particularly what I'll call "no-nothing" conservatives) who carp continuously on the federal deficit are missing the main point. In the press, you continuously hear laments that the federal (or state, or local) deficit is the highest ever recorded.

That may be true but it's not the point. What matters is the level of deficit as a percent of Gross Domestic Product (GDP). If the economy grows then the deficit can also grow. It's almost exactly like a business borrowing money to invest in future growth. As long as the business can service the debt, then borrow away.

Having said that, this graphic is still pretty sobering. The federal government historical spends between 15 and 20 percent of GDP. But in the future? Something has to give here.