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Monday, August 04, 2014

'How Austerity Wrecked the Recovery'

Kevin Drum picks this as his "Chart of the Day" (it's from Calculated Risk):


He remarks:

...after every previous recession of the past 40 years, the subsequent recovery was helped along by increased government outlays. In the 2007-08 recession—and only in this recession—the recovery was deliberately hobbled by insisting on declining government outlays. This is despite the fact that it was the worst recession of the bunch.

The result, of course, was that there was no Obama Miracle in 2011. In fact, there was barely even an Obama Recovery. If you think that's just a coincidence, I have a bridge to sell you.

    Posted by on Monday, August 4, 2014 at 03:50 PM in Economics, Fiscal Policy | Permalink  Comments (46)


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