Conversable Economist Timothy Taylor, at the end of a post correcting yet another repetition of the Hoover myth:
And the elephant in the room, which Judis doesn’t discuss, is the accumulation of debt. After all of the deficits of the 1930s, the total ratio of federal debt held by the public still totaled only 44.2% of GDP in 1940. Throughout the 1930s, the federal government had a lot of capacity to borrow–and could then still ramp borrowing much higher to finance the fighting of World War II. But in 2011, total federal debt held by the public is an estimated 72% of GDP. Looking ahead over the next decade, the federal government has a lot less capacity to borrow.
I don’t know about you, but that makes me nervous.