Apr
27

Government Growth

capitolIn 16Q3 and in 16Q4, the combined addition to real US GDP by all levels of government (federal, state and local) was 0.07 and 0.06 of a percentage point respectively. That was weak. Government spending should consistently contribute roughly 0.40 of a percentage point to GDP growth. More than that, and government spending is fiscally stimulative, less than that, as has been the case of late, is fiscally contractionary.

Share This Post
Facebook Twitter Email

Speak Your Mind

*