They want to show, as good little Keynesians, that you must spend your way out of debt.
Now perhaps there\’s some detail, some cuteness, to their numbers that I\’ve not got. But just as an example, they say that in 1918, government expenditure was 35% of GDP (page 6) which really doesn\’t sound right for the last year of the first total war.
Indeed it\’s not. The military budget alone was £2.4 billion from a £5.1 billion GDP.
Correct, the military budget was 47% of GDP on its own.
So, have I missed some subtle point about their numbers or are they just making them up as they go along?