This chart from finance professor Mark Perry is getting some attention, as it shows government spending “skyrocketing” (Perry’s word) as a share of GDP under the Obama administration.
It certainly looks like a remarkable surge, until you look at the Y axis. Yes, spending is higher under Obama than it was under Bush II, but a difference of 25% of GDP vs. 22% of GDP is just not that dramatic. It’s certainly not anything that looks like “skyrocketing.”
And the decline under the Obama plan, to just 20% of GDP, certainly doesn’t look like such a radical change.
Photo: Mark Perry