FIGURE 31.6 Gross Federal Debt as a Percentage of Gross Domestic Product
Economists argue that the best measure of a nation’s debt is its size relative to the overall economy — that is, its percentage of gross domestic product (GDP). The size of the total U.S. debt declined from its World War II high until the 1980s, when it increased dramatically under President Reagan. Since then, the debt has consistently increased as a percentage of GDP, aside from a small decline under President Clinton’s deficit-reduction plans in the mid-1990s. Source: dshort.com.