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.