Monday, July 15, 2013

Government is responsible for weak recovery

Argument in one graph. The figure below shows that private consumption (red line) fell, and then started growing, while government spending (blue line) was important for the early part of the recovery and then has become a drag on the economy.
Hard to see how we are going to get out of the hole with public policy being so incredibly misguided.

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On the GDP data and the risk of a recession

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