Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
July 28, 2014

States Continue to Drag Down GDP

The Bureau of Economic Affair’s latest revision to the second quarter gross domestic product estimates show that state and local government “was still a drag on GDP in Q2,” notes Bill McBride.

“One of the reasons I expect GDP to pick up over the next few years is that state and local government spending will probably stop being a drag on GDP, and might even add a little to GDP going forward… However state and local government spending has made a negative contribution for 13 of the last 14 quarters.”

“Currently state and local government as a percent of GDP is back to 1970 levels!”

  • puakev

    Cut n’ grow

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