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Austerity: difficult economic conditions created by government measures to reduce public expenditure. > Federal Spending was increasing modestly, year on year,
by bko 8y ago
Austerity: difficult economic conditions created by government measures to reduce public expenditure.
> Federal Spending was increasing modestly, year on year, in the mid 2000s. But it jumped by $700 billion a year in the Great Recession to bail out the banks and provide “stimulus.” Since the recession federal spending held steady at about $3.6 trillion per year for a few years, before resuming growth in 2015.
Viewed from a GDP perspective, federal spending was steady at about 19 percent GDP in the mid 2000s and then jumped, in the Great Recession to almost 25 percent GDP. But in the subsequent economic recovery federal spending has steadily declined as a percent of GDP down to about 20 percent in 2014. But in 2015 federal spending started to increase as a percent of GDP.
The federal government never cut public expenditure. It went up considerably due to the stimulus and was magnified in terms of percentage of gdp due to drop in gdp. Over the years following the crisis the expenditures dropped as a percentage of gdp from the new elevated rate due to gdp growth, but saying there was austerity by the federal government is not true
https://www.usgovernmentspending.com/federal_spending_chart https://www.usgovernmentspending.com/federal_spending_chart
- Gibbon1 8y agoCombine the Federal Governments fiscal stimulus with state an local austerity and they balance each other out.
- bko 8y ago> Total US Government Spending, federal, state and local, was increasing briskly, year on year, in the mid 2000s from $4.4 trillion in 2005 to $6 trillion in the depths of the Great Recession in 2009. For several years after the end of the recession total government spending leveled out at $6 trillion. But in 2015 spending started to increase again. per year. Viewed from a GDP perspective, total government spending was steady at about 33 percent GDP in the mid 2000s and then jumped, in the Great Recession, to 41 percent GDP. But in the subsequent economic recovery total government spending has steadily declined as a percent of GDP down to about 34 percent GDP in 2015. Maybe, but there was no austerity. There was a freeze in total spending in absolute terms and inflation was practically zero so real terms as well. The years prior to the crisis spending grew in absolute terms as th economy grew so spending stayed at the elevated rate https://www.usgovernmentspending.com/total_spending_chart https://www.usgovernmentspending.com/total_spending_chart
- jeffbax 8y agoState budgets are utterly imploding under public debt obligations. To claim there was austerity in the US is comical. The lack of meaningful budget tightening now is going to cause actual austerity eventually though.