Does government spending actually make the economy grow faster?

This chart blows up the liberal argument that Federal spending helps the economy.

For decades, the Left argued that the more government spends, the faster the economy grows. But looking back 25 years through 2012, one sees an amazing thing: The slower government spending rose (such as in the 1990s under Bill Clinton), the faster the economy grew, and when spending was stepped up under Bush, the Economy did not grow so fast.

In 2007 with the Democrats in control of both houses of Congress, spending took off even more and lo and behold the economy started going down hill. The Democrats raised hell when spending in 2011-2012 did not hold up to (what was suppose to be one time emergency) spending levels of 2009 but if you look at the chart you see that as spending cooled off, economic growth started to rise again.

The chart stings even more for liberals when you consider that domestic spending (what liberals argue drives the economy best) took off in 2007 yet the economy kept getting worse and worse.

Federal-Spending-vs-Economic-Growth


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