AEIdeas

The public policy blog of the American Enterprise Institute

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Discussion: (1 comment)

  1. I wonder if you folks read these comments. re: the last chart, I already pointed out that even aside from the last year or so, if you look at the data longer term (and around the world) most of the time the faster government spending grows, the slower the private economy grows, (and vice versa) as this page shows:

    http://www.politicsdebunked.com/article-list/spendingpattern

    The pattern isn’t unique to the US but shows up around the world. Of course establishing cause and effect is a more complicated issue (something which is highly questionable in any claims on the part of some folks to have found some sort of signal in the data supporting Keynesian stimulus spending, they ignore potential alternatives as that page briefly notes in a generic fashion (it doesn’t critique any particular paper of theirs)).

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