On Oct 12, 2010, at 1:02 PM, Jordan Hayes wrote:
> Krugman making the same point today:
I was a little mystified by his point. The federal share of GDP is up 5 percentage points over the last three years - 1 point consumption and almost 4 points transfers. Investment is up just 0.2 point, which is stupid. But 5 points is a lot. Revenue over the same period is down more than 2 points. Much of the decline in revenue and rise in transfers is the result of the recession, but still, these are big shifts.
Doug