Chart of the Day
Posted at 9:30 a.m. on Dec. 11, 2012
– Goldman Sachs’s top economist Jan Hatzius explains to Business Insider why this chart signals strong US economic growth in the second half of 2013 as long as we avoid the “fiscal cliff.”
Said Hatzius, “every dollar of government deficits has to be offset with private sector surpluses purely from an accounting standpoint… If the business sector is basically trying to reduce its financial surplus at a more rapid pace than the government is trying to reduce its deficit then you’re getting a net positive impulse to spending which then translates into stronger, higher, more income, and ultimately feeds back into spending.”
