"in real terms national
debt was left much lower than after WWII."
This is an example of a truly defective mental process. Obviously you have shot your ignorant mouth off without checking the data, but that is not important. Even one with modest intelligence would know that this statement is a lie.
In 1945-1995 all price indexes have increased in most years, and there have been deficits according to any budget definition in almost every year. Therefore in nearly all years the size of the Debt in current dollars must have increased, and because there have never been any big surpluses in any year, the Debt never decreased sigificantly in any year.
In fact, the 1995 debt held by the public was $3,640 billion, compared to 1950 $219 billion. Thus at current dollars, the debt has increased about sixteen times over the period. Prices, by any index, have increased much less. The purchasing power of the dollar (according to the CPI) decreased from $4.151 in 1950 to $.675 in 1994, about one sixth of the 1950 number. Thus correcting the debt number for inflation indicates that debt increased (in 1982-84 constant dollars) from $1,200 to $5,400.
|
