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US Americans GDP contracts

DirkTheDeac said:
If that is the case then why does Obama want to cut defense spending? Does that not cut private sector jobs?
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It will but many aren't in the US.

But that's only one part of it. The GOP wants to cut every department. and won't admit it cost jobs.
 
SkinsNDeacs said:
Are you suggesting that the House republicans control fiscal policy?
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You still don't understand how the Senate works do you?

Because of the most obstructionist person in US legislative history, everything takes 60 votes in the Senate.

Harry Reid pussied out and left McConnell in charge again.
 
94Deac said:
The majority of defense money is channeled to very large companies, some with questionable histories involving kick-backs, over-runs, and fraud. I'm more in favor of keeping small businesses in the game than a company like Haliburton or Lockheed.
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TRUTHTRUTHTRUTH
 
TuffaloDeac10 said:
fredgraph.png


Total (Fed + State + Local) government expenditures as a percent of GDP.
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That is hardly austerity.
 
Not sure what the problem is. Spending as a percent of GDP went up during the recession and now it's going down.
 
Well, for starters, that chart suggests that cutting government spending may not invariably lead to a better, higher-growth economy. And we know that's malarkey.

Everyone knows that the answer to all problems is less taxes, less spending, less government. Not better government, as there is no such thing. [/teapartyintellectualrant]
 
And if you break things out, it does work out to be that total government spending is about stagnating, while overall GDP is growing (which is a good development, but labor markets would be tighter today if we had a bigger ARRA in 2009). Kinda where the "private sector is doing fine" comment came from.
 
94Deac said:
The majority of defense money is channeled to very large companies, some with questionable histories involving kick-backs, over-runs, and fraud. I'm more in favor of keeping small businesses in the game than a company like Haliburton or Lockheed.
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Maybe when the neighborhood grocery can manufacture airplanes they'll get a government contract.
 
Only in liberal Fantasyland is spending more than Dubya Bush considered austerity.
 
EatLeadCommie said:
Maybe when the neighborhood grocery can manufacture airplanes they'll get a government contract.
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Uh, not too familiar with sub contracting there, are ya? There's a reason companies like Raytheon, GE, GD, and Northrup create corporate divisions to meet SOW requirements for defense contracts: to get not just airframe and major systems orders but also the integrated technologies (telemetry, guidance, avionics) by undercutting smaller firms bidding on same projects. Your "neighborhood grocery" suggestion is a quaint and charming reference but not relevant in any legitimate way.
 
WFFaithful said:
"A large cut in federal spending, primarily on defense, was one of the biggest drags on growth. Defense spending contracted at a 22% annual rate.
Alan Kreuger, head of President Obama's Council of Economic Advisers, attributed the deep decline to the looming sequestration deadline.
"A likely explanation for the sharp decline in Federal defense spending is uncertainty concerning the automatic spending cuts that were scheduled to take effect in January, and are currently scheduled to take effect on March 1st,""

http://money.cnn.com/2013/01/30/news/economy/gdp-report/index.html?hpt=hp_t3
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Except overall gov't spending in the 4th quarter was higher than in either the 2nd quarter or the 3rd quarter. Defense spending may have been down, but overall spending was still higher than the previous 2 quarters.

http://www.fms.treas.gov/mts/mts.pdf
 
I guess if we just increased government spending by 3 or 400% the economy would start flying! We should do that! Lets make the federal budget 10 trillion/year! That should do the trick!
 
Sgt Hulka said:
I guess if we just increased government spending by 3 or 400% the economy would start flying! We should do that! Lets make the federal budget 10 trillion/year! That should do the trick!
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Worked in WWII.
 
84Deac said:
Except overall gov't spending in the 4th quarter was higher than in either the 2nd quarter or the 3rd quarter. Defense spending may have been down, but overall spending was still higher than the previous 2 quarters.

http://www.fms.treas.gov/mts/mts.pdf
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That's expenditures, not spending. Do we need to have another lesson on transfer payments?
 
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