Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site fluke.UUCP Path: utzoo!linus!philabs!cmcl2!floyd!harpo!ihnp4!alberta!ubc-vision!uw-beaver!microsoft!fluke!dash From: dash@fluke.UUCP (Mike Dash) Newsgroups: net.misc Subject: deficits and recession Message-ID: <911@vax2.fluke.UUCP> Date: Mon, 30-Jan-84 14:09:43 EST Article-I.D.: vax2.911 Posted: Mon Jan 30 14:09:43 1984 Date-Received: Fri, 3-Feb-84 02:45:53 EST Organization: John Fluke Mfg. Co., Everett, Wash Lines: 11 i've never understood why the federal deficit has anything to do with the recession or inflation... until this short note in today's wall street journal shed some light on the subject. i pass it along for anyone else who is curious about the connection: the figures involved are unprecedented: Mostly because the government had to borrow to finance a $200 billion deficit, the pool of domestic funds available for new private investment shrank to 1.8% of gross national product last year. That compares with about 7% of GNP that was available for new investment during the 1950's, 7.5% during the 1960's, and 6.3% during the 1970's.