Shortfalls During The Depression Have Nothing On Today's Deficit

From IBD

The current recession is well on its way to generating the largest peacetime deficit in America's history. By any fiscal yardstick, the federal budget has never seen anything like the current financial crisis' impact. Like the financial crisis, there is no indication that the deficit it is generating has yet peaked.

The financial crisis and the fiscal crisis diverge, however, in one crucial but overlooked aspect: The fiscal response is more closely related to the size of government than the severity of the economic crisis.

With the passage of the economic stimulus bill, Congressional Budget Office estimates show the federal deficit reaching $1.7 trillion in the current fiscal year. The administration's budget estimates an even higher $1.8 trillion deficit.