Really -- Austerity is a Really Stupid Idea, Completely Divorced From Data and Reality
Today, the BEA released the initial estimate of 4Q GDP. Above is a chart of the percentage change in 4Q11 GDP and the elements that contributed or subtracted from GDP growth. Guess what? Austerity subtracted from growth. This occurred because of contractions at the federal (which subtracted .62 from the calculation) and state level (which subtracted .32 from the calculation).