By 1985, World War II debt had effectively been “paid off,” with debt to GDP ratio returning to pre-war levels. But betw
Posted: Sun May 08, 2022 9:35 am
By 1985, World War II debt had effectively been “paid off,” with
debt to GDP ratio returning to pre-war levels. But between
1945 and 1985 the federal government only ran
small budget surpluses in six years. In fact, since 1950, federal
debt (in absolute terms) increased every year.
1. Use the dynamic equation for government debt to explain how
the US was able to reduce the debt to GDP ratio between 1945
and 1985 without running
sustained budget surpluses.
debt to GDP ratio returning to pre-war levels. But between
1945 and 1985 the federal government only ran
small budget surpluses in six years. In fact, since 1950, federal
debt (in absolute terms) increased every year.
1. Use the dynamic equation for government debt to explain how
the US was able to reduce the debt to GDP ratio between 1945
and 1985 without running
sustained budget surpluses.