Monday, November 2, 2015

Federal spending growth vs real GDP growth

They are both here, all in percent change QoQ.  Notice Reagan grew government faster than GDP and Clinton grew GDP faster than government.  Then Bush, like all Republicans, went hog wild with the government spending.

But, the point is, there is no fiscal multiplier greater than one in this series. Clinton ran a declining deficit and then a surplus, yet got the greater multiplier; and the best growth.

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