The takeaway from this run of data is that the government is losing its ability to inflict damage on the U.S. economy. Yes, falling government spending and higher taxes are removing cash from the economy. Yes, the stupid sequester is unnecessarily throwing people out of work and tamping down demand. And, yes, the rolling Republican temper tantrums have acted as a malign force. But while these factors function as a powerful drag, they are not sufficiently powerful to overcome the momentum of the private sector, and of the recovering state and local government sectors.
Amateur this Gross guy. Once again he claim that in spite of all the austerity, we perform well. This is a bias confirmation that multipliers must be greater than one. Here is a clue, bonehead, maybe the economy grew because of austerity, and multipliers are less than one.
Any proof of this? Yes, everyday on this blog, ample proof that long term and short term government multipliers are less than one. I showed this in the important case of California, and Jerry has proved the case since his policies were essentially austerity. The January tax hike in DC was austerity, and the shutdown was austerity. And what to we see? Continually increasing quarterly growth rates since January.
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