Government Spending Does Not Equal Recovery
October 18, 2010 by Website Administrator
Every day the economy stagnates, the claim that a recession necessitates more government spending becomes a little less believable. Sure there was plenty of evidence to make this point prior to Congress passed the massive stimulus bill in 2009, but this President and Democratic Congress needed to see try one more time. From unemployment rate to GDP growth to consumer confidence, this is proving to be the worst economic recovery in modern times. Check out these graphs to see the dramatic lack of recovery comparable to recent major recessions.
Two differences are most notable – the 1981-82 recession had a higher unemployment rate than this latest recession but neither 1981-82 nor 1974-75 had near the government infusion of cash (i.e., government deficits). So not only are we in a slower recovery, we’re also facing a massive government bill that seems to have done little to nothing to help us.