[akamaka]

If you compare government budget as share of GDP, you can see that is hasn’t “exploded”, outside of crisis periods. Current spending rate is elevated about 25% over the 1990s period of restraint, but quite close to the 1980s.

https://fred.stlouisfed.org/series/FYONGDA188S

[whimsicalism]

You keep switching between flows and stocks and what you want your numerator and denominator to be, why wouldn't I just look at real spending and real debt numbers - ie. the number we ultimately have to pay interest on?

GDP % is only relevant if we are politically able to raise taxes.

[akamaka]

Both of the charts I posted have GDP as the denominator (although I incorrectly said the first was “share of budget”).

I think it’s very important to use GDP as a denominator, because otherwise you’ll be stuck crying wolf, saying “debt always keeps going up” even during the good times.

There are a lot of people who simply don’t believe that the government budget needs a trim right now, because people have been continuously saying there was a debt crisis even when the financial situation was relatively favorable.

[Libidinalecon]

You know why Japan is fine with 236% debt to gdp?

Because measuring things against GDP like this is completely meaningless.

If you use your brain for even the slightest moment it would be completely obvious that the sum total amount of a debit is a huge deal because of scale of the interest.