Reply To: Government Spending and GDP


Would be curious to see if anyone has conducted a study of correlation using C+I+(X-M)-G and unemployment rates. In other words if calculating government expenditures as a negative due to their crowding out effect in the private sector would lead to low unemployment in times of higher levels of C+I+(X-M)-G. Excluding times of war when we had a draft due to the special circumstances involved.

Seems to me to not only be comparing apples and oranges, but comparing private citizens planting apple trees and the government chopping some of them down to plant orange trees because central planning knows best. Every time.