Charting quarter to quarter changes in GDP vs Federal spending, and hand waving cause and effect. The blue line is percent change in Congressional spending, the red line changes in GDP. Yes the two seem highly correlated, initially, with the rise in Congressional spending at the 40th quarter. Watch GDP in the next release as Congressional spending reasonably steady at the elevated rate. If GDP holds, Dean Baker doesn't cause more unemployment, if GDP starts to trend down a bit, then Dean Baker is causing unemployment. Note: There is a lag between Congressional spending and GDP.
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