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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.