Govt Debt

The Wall Street Journal has an interesting op-ed today about the US government's debt and its credit rating. It emphasizes the tremendous increase in spending during the Obama period. In reviewing the history of federal spending to GDP ratios, it points out that in 1946, right after World War II, the spending was 24.8% of GDP but it fell in 14.8% in 1947. Doesn't this run counter to all the claims that too rapid a decrease in spending would cause economic catastrophe. Although there was a recession in 1946-1947, the United States was about to embark on several decades of strong economic growth. In the decade after reducing federal spending by 10% of GDP, the US enjoyed unprecedented wealth and prosperity. Of course, the situation is different now but this history counters claims that government spending and stimulus is the key to recovery.