Chart of the Day: How Austerity Wrecked the Recovery


I’ve previously nominated a version of the illustration below as chart of the year, and last year I wrote an entire piece for the print magazine as basically just an excuse to get it in print. Bill McBride’s version focuses on public sector payroll, not total public sector spending, but it tells the same story: after every previous recession of the past 40 years, the subsequent recovery was helped along by increased government outlays. In the 2007-08 recession—and only in this recession—the recovery was deliberately hobbled by insisting on declining government outlays. This is despite the fact that it was the worst recession of the bunch.

The result, of course, was that there was no Obama Miracle in 2011. In fact, there was barely even an Obama Recovery. If you think that’s just a coincidence, I have a bridge to sell you.

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BEFORE YOU CLICK AWAY!

“Lying.” “Disgusting.” “Scum.” “Slime.” “Corrupt.” “Enemy of the people.” Donald Trump has always made clear what he thinks of journalists. And it’s plain now that his administration intends to do everything it can to stop journalists from reporting things they don’t like—which is most things that are true.

No one gets to tell Mother Jones what to publish or not publish, because no one owns our fiercely independent newsroom. But that also means we need to directly raise the resources it takes to keep our journalism alive. There’s only one way for that to happen, and it’s readers like you stepping up. Please help with a donation today if you can—even a few bucks will make a real difference. A monthly gift would be incredible.

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