January 29, 2016

OUR REPUBLICAN PRESIDENT:

Hutchins' Fiscal Impact Measure shows sluggish government spending contributed to weak fourth quarter GDP growth (David Wessel | January 29, 2016, Brookings)

The Fiscal Impact Measure, which tracks the contribution of local, state and federal fiscal policy to economic growth, came in slightly above zero in the fourth quarter of 2015, according to the latest update released Friday, January 29th, 2016 by the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution.

Local, state and federal fiscal policy added 0.06 percentage points to the pace of economic growth in the fourth quarter, according to the FIM. The overall economy grew an annual, inflation-adjusted rate of 0.7% in the fourth quarter, according to the latest Bureau of Economic Analysis estimate. 

The fourth-quarter reading on the FIM follows positive readings of 0.22% in the third quarter and 0.47% in the second quarter; the FIM was negative for the four preceding years amid federal tax increases and across-the-board spending cuts and state and local belt-tightening.

"Today's Fiscal Impact Measure reading shows that the government sector contributed to the weakness in fourth-quarter GDP," said Hutchins Center Policy Director Louise Sheiner. 

That's the staggering thing about economic growth under the UR, that he's achieving it even as he reduces government spending and employment.

Posted by at January 29, 2016 5:05 PM

  

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