Tuesday, November 25, 2008

I'm thinking Boehner needs econ refresher

"Republican Leader John Boehner of Ohio said he hoped the new administration would listen to those "who do not believe increasing government spending is the best way to put our economy back on track."
[Obama urges Congress to pass costly stimulus bill]

Recall:
GDP = C + I + X + G, with
C = personal/household Consumption,
I = Investment
X = net Exports
G = Government purchases (consumption + investment)
Consumer spending is in the tank & going nowhere but down.
Investment is in the tank and going down.
Exports - until recently a bright spot - are going down.

From where other than "G" does Boehner hope to get GDP going again???

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