Spending Is The Problem

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Monday, February 11, 2013 Spending Is The Problem Janet Yellen Vice-Chair of the San Francisco Federal Reserve has a big new speech out about how slow this recovery has been, and why. One of the culprits for the slower recovery? Fiscal policy. Specifically? Were not spending enough. Government spending, which usually provides a boost to the economy in the quarters following the recession, has been a net drag this time because the government is spending less than it normally does. As this chart shows, in the initial 4 quarters since the start of ths recovery, government spending provided its standard boost to GDP. But in the 8 quarter and 12 quarter period after that, fiscal policy has been a drag, as spending growth has been a lot slower than in past recoveries. So yes, spending is the problem. We just need to crank it up. Read » Also On Money Game Today: The Japanese Yen Just Took Its Biggest Dive In Weeks STOCKS FALL: Here's What You Need To Know Advertisement CHART OF THE DAY: How The World's Biggest Stock Markets Evolved Since 1900 CHART OF THE DAY: Hedge Funds Look A Lot Like Cheap Index Funds These Days CHART OF THE DAY: US Companies Haven't Paid The Statutory Tax Rate For At Least 45 Years Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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