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Has fiscal policy been unsustainable for decades?

After the previous post, Carl made the following comment: I have a hard time believing it’s because “fiscal policy is unsustainable”. It’s been unsustainable for decades. Here’s the data for 1947-2007: So no, fiscal policy has not been unsustainable for decades.  The debt ratio fell from 80% of GDP in 1947 to 35% of GDP […]
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