During the 1980s, federal payments to individuals including Social Security and Medicare was 10% of GDP. From 1990 till the Housing Bust it was about 12%. During the Bust it hit 15%, but quickly fell and was 14.5% on the Covid eve. It then quickly jumped to 20%, a rise of 5.5% or $1.2 trillion! This is partly why we are now shopping like mad and why inflation is elevated. (Source: Dr. Elliot Eisenberg, the Bowtie Economist).

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