Recession Resistance

The U.S. economy is becoming increasingly recession resistant. State, local, and federal government spending as a percentage of GDP has risen from 29% in 1962 to 35% today. Similarly, healthcare spending has risen from 5.2% of GDP in 1962 to 18.3% in 2021. Collectively they have risen from 34.2% of GDP to 53.3% and most critically, both sectors are not particularly interest-rate sensitive.