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To: jdsteel

Government spending is a component of the GDP calculation. If government spending contracts, the GDP will necessarily shrink. That will make things look like a recession. It was for the purpose of concealing the extend of a GDP contraction that much of the stimulus money went to keep local government workers employed.


17 posted on 12/21/2012 8:07:11 AM PST by Sgt_Schultze (A half-truth is a complete lie)
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To: Sgt_Schultze

Fed spending is about 25% of GDP. The cliff reduces that spending by a fraction. Not enough to bring the numbers down much.


21 posted on 12/21/2012 4:12:14 PM PST by jdsteel (Give me freedom, not more government.)
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