Fallacy of composition

This chart aggregates changes in local and state government spending, the red line.  Problem is, that is mostly California adjusting to near bankruptcy. Consider this graph which is federal spending as a share of GDP:

We see mostly, the federal government spending rose to high levels and stayed there the entire period. The period of low growth aligns quite well with expanded Federal spending.  This expanded federal spending is the attempt by Keynesians to salvage the situation in New York and California.  California Undemocrats had driven the state nearly to bankruptcy, the Undemocratic party platform has one plank, 'Lets hope the California legislature gets a clue'

No one was worried about Texas, mainly because Texas stayed out of trouble. It is the Keynesians bailing out the two progressive hegemons of the American Undemocratic party. It has a multiplier less than one, and now that the money has been invested in these dysfunctional economies, DC is stuck.  DC can do nothing else than keep its two hegemons alive, actual economic expansion is not a concern. Thanks to the structure of the party finances, Obama's economic plan is very simple, freeze everything and hope California makes Obamacare work reasonably.