These changes are optical rather than substantive. Given the spending agenda that is already in place, we can expect to see large increases in the proportion of GDP that is spent by our government for years to come.
Of course the proposal is going to be optical. Nearly all of last quarter's marginal GDP, quater over quarter change, came from personal consumption expenditures (PCE) and governement consumption expenditures and investment (GCEI). A spending freeze would take a serious bite out of GDP as we approach the critical mid-term elections. If that doesn't matter they might as well shoot for total political annialation and raise taxes.
Source: online.wsj.com
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