
By James C. Sherlock
Steve Hanerโs superb column on the state budget turned attention to federal aid to state and local governments. It is worthwhile to review where the feds get that money.
James T. Agresti, CEO of Just Facts (chart above), has written recently hat U.S. debt-to-GDP ratio is four times the historical average and climbing:
“The US national debt has just reached 120.5 percent of the nationโs annual economic output, breaking a record set in 1946 for the highest debt level in the history of the United States. The previous extreme of 118.4 percent stemmed from World War II, the deadliest and most widespread conflict in world history.”
The Federal Reserve
The Fedโs dual mandate from Congress is to maximize employment and stabilize prices.ย The Fed floods the economy with money in times like this and is supposed to sop it up with higher rates when the economy appears to overheat and prices rise too fast. (more…)
















