Chart of the Day
Posted at 11 a.m. on March 20, 2013
– Jared Bernstein provides the following chart from Congressional Budget Office data showing that between 2009 and 2013 federal government spending actually shrunk as a percentage of GDP (in red) and has only increased 0.6% in dollars (in blue).
“I think those two lines partially explain why this recovery has been such a slog: we hit back hard against the recession in 2009 and GDP started growing in real terms shortly thereafter. But we stopped too soon, certainly before the recovery reached most households.”