Amid Fiscal Uncertainty, Venture Capital Is Way Down In Silicon
Valley  kcbrown Re:Oh no (421 comments)  Anybody as freaked out
by current government borrowing as you describe is simply being
hysterical. Sure the deficit at a historical high in absolute
terms, but its nowhere near a historical high as percent of GDP.
While that's true, it's highly misleading. The only time the
deficit was higher than it is now was during World War 2 and its
immediate aftermath. The current deficit as a percentage of GDP
is now even higher than it was during the Great Depression:
Remember that government debt is actually money that is borrowed
by the government from the private sector and spent on
government expenses, which means that, aside from that which is
borrowed from the federal reserve system, it is money that could
otherwise be invested in private business ventures. In the case
of World War 2, there was good reason for such a high deficit:
we were fighting a war of global proportions and diverting the
majority of th