G is Part of the Demand in GDP
Incoming Republicans making a point in the new House of Representatives Majority should remember the importance of Government spending constancy in the economic recovery.
Often derided as taxes from incomes and working people thrown away on nothing; Government spending is consumption. When the private sector slacks off, the recession begins – unless Government spends.
As an economic prong, it should modernly be receded gradually or addressed with a savings brake to cool an inflated heated economy.
Perhaps the GOP would like to address it again with a symbolic $1 spending cut to make the point. Yes other and real cuts are there and waste and appropriations re-direction are part of politics. But, lets keep the G up in the whole economics equation.
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