I wrote: 2007 $5.1 trillion > 2006 $4.6 trillion *THAT SHOULD BE 2008 -- the year of the crash* > 2010 $4.7 trillion > 2014 $5.8 trillion (finally recovered) >
Government income declined from $5.1 to $4.6 while government expenses went through the roof, because the government bailed out the banks, GM and Wall Street with the TARP program. Fortunately, most of that money was paid back, including interest. $455 billion spent, $442 billion paid back, 98.9% recovery. http://www.treasury.gov/initiatives/financial-stability/reports/Pages/TARP-Tracker.aspx Government expenses also increased because of safety net expenses such as unemployment payments and food stamps. It would have been a 1929-type catastrophe if that had not happened. - Jed
