Tuesday, August 2, 2016

Obama's growth numbers relative to trend


Since the Nixon shock, real GDP growth.  

Once prices settled a bit (1985)  we see growth rate trending down during each cycle, and dropping; with the exception of the surplus running regime of Bubba.  I say Obama did OK given that lil Bush left him with a huge friggen recession. 


I don't need much regression analysis to tell me that growth potential drops when you run up the debt,   Factoring out the recession cycle, the probability of running up the debt and having higher potential growth is not in this graph, there is a four out of four tries it failed.  There are no good aggregate multipliers based on deficit spending measures.

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