Summary
With the Congressional Budget Office projecting a federal deficit of $1.2 trillion for 2009, now is a good time to look backward at past recessions' effects. For those worried about increasing the federal deficit during a recession, have no fear - deficits and recessions go hand in hand.
Slowing revenues and rising spending have been the historical hallmarks of recession over the last 60 years. Not only are these same factors again in place, they are compounded this time by new ones unique to this recession and our current period.See the full content of this document
Extract
Recession Effects
In the last 60 years, America has had nine recessions in addition to the current one. In looking at the federal budget in the year in which a recession's trough occurred, only in 1954 did the deficit n...
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