No recovery, just deficit spending to cover up failed economic policies.
From reader Tim Wallace at MISH’S Global Economic Trend Analysis
Here are a few charts from reader Tim Wallace on spending, the deficit, and GDP.
Federal Spending as a Percentage of GDP
Spending and GDP in U.S. Dollars
Deficit Compared to Revenue
Wallace writes …
1. In the past 48 years we have averaged about 19.3% of GDP in federal spending. Since 2009, federal spending has averaged 22.7% of GDP.
2. The second chart shows 4th quarter GDP numbers along with the federal spending numbers. Note the huge surge in 2009 which has never been pulled back.
3. The last chart shows deficits as a percentage of revenue. Historically, the average is 17.5%. Since 2009 however, 52.7% of spending has been deficit spending. 57 cents of of every dollar spent was borrowed.
My contention is that there has not been an economic recovery, just deficit spending by government to cover up failed economic policies.
Mike “Mish” Shedlock
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