Surging Federal Expenditures, Collapsing Tax Revenue…These Are Not Signs Of A Strong Economy

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Authored by Chris Hamilton via Econimica blog,

Typically in times of strong economic activity, tax revenues rise and federal government spending is flat or even declines.  Times of economic weakness (usually recognized as recessions) see the opposite.  The chart below shows the year over year change (quarterly basis) in Federal Government expenditures (blue line), federal tax revenue (black line), and household net worth (yellow columns), plus shaded areas are recessions.  The current period of surging federal government expenditures, collapsing tax revenues,

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