Reducing the Budget Deficit: Policy Issues Mark Labonte – Congressional Research Center April 22, 2011. Linden Graber. What caused the deficit? How large are projected deficits? How much reduction is necessary? How quickly should the deficit be reduced? Policy Options Conclusion. Agenda.
“The budget deficit each year from 2009 to 2011 has been the highest ever in dollar terms and significantly higher as a share of GDPthan in any other year since WWII.”
“The recent growth in deficits is the result of spending reaching its highest level as a share of GDP since 1945 and revenues reaching their lowest level as a share of GDP since 1950.
“From 1946 to 2008, budget deficits averaged 1.7% of GDP and exceeded 5% of GDP only three times. From 2009 to 2011, budget deficits are projected to average 9.4% of GDP.”Something to Keep in Mind…