Tuesday, July 19, 2011

Strong private sector growth being dragged down by shrinking governement

In 2008-9 private sector output collapsed but with the 'stimulus', government output didn't.  Now private sector output is growing and is pulled down by a slightly shrinking public sector.  But normally coming out of such a deep recession, private sector growth should be much higher.  It is only two thirds of what it was in 2006 which was the fifth year of recovery.  The Obami want you to look at this as good but the truth is that the private sector should be growing twice as fast.  Capital strike anyone?

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