In 1939, the federal budget was $9 billion, the most in peacetime history. The year before, when looking at the proposed budget, a young congressman named Everett Dirksen was quoted by the New York Times as saying, “a billion here, a billion there, and by and by it begins to mount up into money.” (Later, someone amended the quote to “real money,” which has a greater effect in print, but probably wasn’t necessary when spoken in Dirksen’s baritone voice.)
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In today’s dollars, the 1939 federal budget would be about $140 billion. But Congress spent much more than that in 2020. After adding the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, total federal spending was nearly $6.6 trillion, more than 700 times the 1939 budget and around 50 times the inflation-adjusted 1939 budget. Since revenues don’t come close to these expenses, the federal deficit soared to $3.1 trillion and the federal debt today is nearly $28 trillion. Continue reading
