As can be seen, the decline in the prviate economy, as represented by nonfarm business, was even more severe than GDP in late 2008/early 2009 (2008Q4: 8.9% decline in GDP vs. 12.7% decline in nonfarm business; 2009Q1: 6.7% decline in GDP vs. 8.7% decline in nonfarm business). This was offset somewhat by government's positive contribution to GDP (at least in the short run). However, the government has been a drag on the economy since the summer of 2010; state and local governments have subtracted from GDP since Spring 2009.
Thursday, March 1, 2012
Interesting Chart: Private vs. Public Economic Growth, 2008-2011
Some interesting charts from the Treasury Notes column of the US Treasury. The one that caught my eye was the following:
As can be seen, the decline in the prviate economy, as represented by nonfarm business, was even more severe than GDP in late 2008/early 2009 (2008Q4: 8.9% decline in GDP vs. 12.7% decline in nonfarm business; 2009Q1: 6.7% decline in GDP vs. 8.7% decline in nonfarm business). This was offset somewhat by government's positive contribution to GDP (at least in the short run). However, the government has been a drag on the economy since the summer of 2010; state and local governments have subtracted from GDP since Spring 2009.
As can be seen, the decline in the prviate economy, as represented by nonfarm business, was even more severe than GDP in late 2008/early 2009 (2008Q4: 8.9% decline in GDP vs. 12.7% decline in nonfarm business; 2009Q1: 6.7% decline in GDP vs. 8.7% decline in nonfarm business). This was offset somewhat by government's positive contribution to GDP (at least in the short run). However, the government has been a drag on the economy since the summer of 2010; state and local governments have subtracted from GDP since Spring 2009.
