Instapundit posted this chart from the WaPo illustrating the pathetic economic growth the United States has experienced under the Obama regime.
As bad as this chart looks, if you read the actual CBO report you find this gem:
The remaining one-third of the unusual slowness in the growth of real GDP can be explained by the slow pace of growth in the ratio of real GDP to potential GDP— which in CBO’s assessment, is attributable to a shortfall in the overall demand for goods and services in the economy. To identify the causes of that shortfall in demand, CBO analyzed the contribution of each main component of demand. Compared with past recoveries, this recovery has seen especially slow growth in four of those components:
- Purchases of goods and services by state and local governments,
- Purchases of goods and services by the federal government,
- Residential investment (consisting primarily of the construction of new homes, home improvements, and brokers’ commissions), and
- Consumer spending.
According to the CBO, a major source of our current economic weakness is due to weak spending on goods and services by state and federal governments. I have to ask, what the heck was the ‘Stimulus Bill’ that had to be passed or the entire economy was going to collapse?
If the CBO is to be believed, we should have plenty of growth due to the ever increasing spending by the Federal government. Oh, and the Federal government isn’t alone in increased spending. State governments are keeping up in the spending arena as well.
If the Keynesian prescriptions by the CBO are to be believed our economy should be in much better shape due to the ever increasing spending by State and Federal governments.
Unfortunately, the Keynesian economics being practiced today are only going lead stagflation and the resurrection of the misery index.