The Budget Deficit

When you talk about the economy to some Democrats and mention the great numbers in regards to low interest rates, low unemployment and record stock prices - they always come back with the talking points about the budget deficit.

It turns out that the budget deficit is actually running very, very low in historical terms.

We are now well below the the average budget deficit over the last 30 years, which is 2.6%. And look at that trend over the last 3 years. It's better than anyone predicted as recently as 6 months ago. You can see that we had a surplus during the Clinton years, but everyone agrees that it was an illusion due in large part to the stock market bubble that finally burst shortly after Bush took office. The end of that speculative market, the attacks of 9/11, and the subsequent wars in Afghanistan and Iraq all took their toll on the federal budget. Viewed in that light, it is simply amazing that the deficit is as small as it is now.

We are living in a boom time. Its morning in America again.

HT Instapundit