Tuesday, February 24, 2009

Debt and GDP

Strange. In a previous post I mentioned the current national debt as a percentage of GDP was about 74%.
The current U.S. GDP is 14.4 trillion. The national debt is now 10.6 trillion, or 74% of the GDP
I thought my math was correct and that I used reliable sources. But two articles say something very different.

Here is from the Telegraph:
Assuming deficit projections by the Congressional Budget Office (CBO) for the 2009 and 2010 fiscal years are right, and adding in the costs of the stimulus package, the bank rescue plan and borrowing costs, US public debt would rise from 41pc of GDP in September 2008 to about 70pc of GDP in September 2011 - roughly in line with Hungary's December 2008 ratio.
Here is from the Wall Street Journal, in an article about how current spending is much more worrisome than current debt. (I point I have made.)
The current federal debt-to-GDP ratio is around 40%, well below the above-100% level at the end of World War II.
How is my 74% figure incorrect?

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