On Feb 1, 2010, at 4:37 PM, Max Sawicky wrote:
> Tightening (change from 2010 to 2011): 1.1% discretionary, split
> evenly between defense and non-defense; .7 in 'other mandatory' (not
> TARP); receipts up 1.5%. Total is 2.5% of GDP (the difference is an
> increase in net interest paid), as DH said yesterday. (Terrible
> fiscal policy)
That's tight. So, given the usual multipliers, doesn't this suggest a
>2.5% drag on GDP? Doesn't that tip us back into recession?