While U.S. government spending as a percentage of GDP has risen dramatically in recent years, it isn’t as high as it has been. I made that point to someone today who had been arguing that the ratio was at unprecedented levels, and that the government had squeezed out the private sector, etc.
I finally had to pull out the following FRED graph. It shows that we’re back to the mid-point of recent history in that ratio, and below most of the period before 1985.That shouldn’t be surprising given the post-2000 U.S. wars, and then the expansion of social programs after TWDSTGD (The Worst Downturn Since The Great Depression), but it does seem to cloud people’s minds (sic.).