dash@fluke.UUCP (Mike Dash) (01/30/84)
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.