Thursday, August 11, 2011


The Government Component of the  National Income and Product Accounts for the past 6 quarters (QI 2010 through Q2 2011):

21Government consumption expenditures
    and gross investment
22   Federal2.88.83.2-3.0-9.42.2
23      National defense0.56.05.7-5.9-12.67.3
24      Nondefense7.814.7-1.83.1-2.7-7.3
25   State and local-3.90.4-0.5-2.7-3.4-3.4
Anyone see a problem here? It's not like we have seen a rip-roaring "crowding-in" of the private sector. For those who think we should cut government spending, well, we are, and more is to come thanks to the debt-ceiling deal. I hope I am wrong about this, but it is hard to see how this leads to a recovery in jobs any time soon.

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