Economics: real growth?
Self-tutoring about economics: the tutor wonders about some figures.
By some reckoning, the US gdp grew by 2.8% over the year 2024. Yet, its deficit was 1.8 trillion, or 6.4% of gdp, that same year. For perspective, in 2023 its deficit was 1.7 trillion, or 6.3%, then, of the gdp. For 2025, the projected deficit is 1.9 trillion, or 6.2% of gdp.
Yet, if the government runs a deficit of 6.4% of gdp, one wonders if, theoretically, that should add 6.4% growth to it directly; to my understanding, the government usually borrows money to spend it. In that case, if the government deficit were zero (hard to imagine), would growth have been -3.6%?
Source:
Jack of Oracle Tutoring by Jack and Diane, Campbell River, BC.