Miguel Afonso Caetano on Nostr: "Second, government spending has played an under-appreciated role in supporting ...
"Second, government spending has played an under-appreciated role in supporting America’s post-pandemic growth. Public transfers account for over a quarter of residents’ income in more than 50 per cent of US counties. Since the start of 2023, the government has created more jobs than dynamic sectors like tech, finance, construction and manufacturing combined. As for Friday’s “blowout” nonfarm payrolls number — showing 256,000 new jobs in December — over 100,000 came from healthcare, social assistance and the government.
Not all public expenditure involves higher spending on welfare and bureaucracy. The government has made productive investments and spent on defence. Still, outside of the pandemic and financial crisis, US public sector spending as a share of GDP is near its highest since the second world war — and it is forecast to rise as debt interest payments pick up."
Not all public expenditure involves higher spending on welfare and bureaucracy. The government has made productive investments and spent on defence. Still, outside of the pandemic and financial crisis, US public sector spending as a share of GDP is near its highest since the second world war — and it is forecast to rise as debt interest payments pick up."