Tag Archives: austerity

Goofus and Gallant Take on the Deficit

This article appeared in our December 2011 newsletter. To subscribe go here. Many people, particularly politicians, use their household budget as an analogy and a starting point when discussing the U.S. federal government deficit and debt. Let’s examine that common comparison and discover how and why that’s an egregious error. To start, we’ll build a [...]

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Latest GDP Data Shows Gov’t Still Keeping Economy Stuck in Neutral

The latest preliminary 2011 Q4 GDP data shows that once again the governments decision to reduce the spending is suppressing GDP growth. The chart below shows the components of the latest quarters GDP. Once again it is budget cuts and layoffs at the state, local, and federal government levels that are holding back a recovery. [...]

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