"Real liberty is neither found in despotism or the extremes of democracy, but in moderate governments.
Alexander Hamilton

Thursday, August 4, 2016

Worst recovery in postwar era largely explained by cuts in government spending

This article from the Economics Policy Institute tells an interesting story about one of the reasons the current recovery has been steady, but slow: the Federal government has not been spending enough.

"The economy was in a very deep hole in 2009, and had we spent the way we did after previous recessions, we would have experienced substantial increase in GDP since then. Instead, cuts in government spending over the last eight years have had a pernicious, negative impact on output and income, as well as on jobs and wages, which depend on the level of spending in the economy. If it weren’t for these cuts, the economy would likely be fully recovered by now, and the expansion would have equaled or exceeded the Bush recovery."

"Recent polls from Gallup and NBC News/Wall Street Journal indicate that between 75 and 82 percent of the public thinks that the nation is on the “wrong track.” It is critically important that the public understands why we’re on that track. But for the cuts in federal spending imposed by the Republican-dominated Congress, the economy would be roaring now. Those responsible for this mess should be held responsible for their economic incompetence."


State Rep Glenn Cordelli said...

This a joke, right?
Just what we need is more government spending, more debt for our children and grandchildren. Move government spending and more government control.
More government spending in Washington AND Concord, right candidate Paul?

Moultonboro Blogger said...

No joke candidate Cordelli. It is precisely your comments that epitomizes why our recovery while successful , could be better.
8 years of President Bush gave us wars, and the worst recession in modern times and your response reads like a Tea Party press release. Just say no to everything.
In 2010 the republican led house decimated one of the finest mental health care systems in the country and in fact was a model for other states. We are still paying for that " no to spending" in both human and financial capital. An now in Concord, you consistently voted to end health care coverage for nearly 50,000 fellow New Hampshire citizens ( one of whom is my daughter) simply because you voted on ideology and in lock step with out of state " advocacy groups" that are not accountable to voters. That is the real joke.
Best of luck to you in the primary.

Dave A. Rossetti said...

Interesting the division in our society. On the surface I suppose it would appear that the state has programs to help people in many ways. I have had the displeasure in witnessing the states department of "heath and human services" (sic) in action. They very methodically destroy families and children in the name of self perpetuation and profit. Same as the police, criminal. I stand with Glenn and his camp on this one Paul. What the state does is criminal at best. Only a fool would believe that we could spend our way into prosperity. Local control of resources is the way to repair the mess we are in, not more administration and rhetoric. How about we go back in time to when things actually worked and the people prospered. Not the ridiculousness we are surrounded by today....

Moultonboro Blogger said...

Per the WSJ: The economy has grown at a 2.1% annual rate since the U.S. recovery began in mid-2009. The U.S. economy, at the end of June, was 15.5% larger than it was when the recession ended in 2009. The current economic expansion has occurred entirely during Barack Obama‘s time in the Oval Office, making it the longest expansion under a single president. In 2001,government spending increased by 2.8%, while in 2009, it decreased by 0.9%. Government spending increased by 33.5% during the Reagan recovery ( 1982-1990). I do not advocate for more big government or spending our way into prosperity. I am in favor of smart government and do not embrace an irrational fear of all things governmental as does the Tea Party. It is just not responsible government.
Dave, I too have had interactions with NH HHS and it was most definitely not positive, but we have also found other NH agencies to be very positive and of great value.