Here's something you may not know: While total government spending and investment fell during Obama's first term, it rose during Reagan's and George W. Bush's. What if Obama had followed suit?
by EZRA KLEIN, Washington Post
In 10 of the past 12 quarters, total government spending and investment has fallen, dragging down the Obama economy. That’s in large part because state and local cutbacks have been so severe, but it’s also because federal spending and investment has, on the whole, been falling since 2010.
This isn’t an unusual analysis. You can see the numbers for yourself if you head to the Bureau of Economic Analysis’s GDP data and scroll through column 21 of table 1.1.2. It’s simply a fact that real government spending fell in three of President Obama’s first four years.
That made me curious: How does government spending and investment during Obama’s first term compare to Ronald Reagan and George W. Bush’s first terms? The answer is poorly. Whereas total government spending dropped in 10 out of the 16 quarters that comprised Obama’s first term, it rose in 13 out of Reagan’s first 16 quarters, and 13 out of Bush’s first 16 quarters.
Or, to put it differently, over Obama’s first term, falling government spending and investment snipped, on average, .11 percentage points of GDP off of (annualized) quarterly growth. During Reagan’s first term, it added .68 percentage points, and during Bush’s first term, it added .52 percentage points. [MORE]
Via Coffee Party USA