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Chief Economist: The Unprecedented Scale Of US Fiscal Stimulus Will Lead To Epic 2023 Bust
[Zero] Suppose Congress passes something close to Biden's Administration stimulus proposal of $1.9 trillion. In that case, that will lift the cumulative amount of fiscal stimulus in the past 12 months to $5 trillion---three tranches $2.2 trillion, $900 billion, and $1.9 trillion.In the past year, nominal GDP totaled $21 trillion, so the cumulative injection of fiscal stimulus amounts to almost 25%. Nothing in modern times comes close, especially during peace times. CBO published a report in 2010 on the military costs of significant wars. The military war costs of World War 1 amounted to 13.6% of GDP and World War 11 35.8%----so the current spending/stimulus is in the middle of the two World Wars. Posted by: Besoeker 2021-02-06 |
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