TPM: Unwillingness Of Congress To Spend Slowing Economic Recovery

Money Money Money - photo by JDR

Talking Points Memo has a chart showing the difference between government spending during the Reagan economic recovery and the Obama economic recovery. Net change in government spending under Obama has actually decreased after going up modestly in his first two years in office. Contrast that to Reagan where net change in government spending increased year after year through his first term.

Government Spending - Reagan vs. Obama

With full disclosure, note that Bush handed Obama a massive federal budget deficit ($1.4 trillion), largely due to the sharp economic downturn combined with tax cuts. There was no such explosion in the deficit in the hand-off from Carter to Reagan. But regardless of where the deficit was when Obama’s term began, TPM’s chart shows that government spending, at its peak, only increased by less than 3% during Obama’s first term. It has since begun to shrink, which is not ideal for an economy that could use an infusion of spending to get it moving at a faster pace.

dks

photo by JDR

Tweet about this on TwitterShare on FacebookShare on Google+Share on RedditPin on PinterestShare on TumblrDigg thisShare on StumbleUponShare on LinkedInEmail this to someone

Economy

#budget#deficit#economy#federal budget#federal deficit#government spending#President Bush#President Obama#President Reagan#recession#spending