At long last, the Obama campaign is finally beginning to capitalize on what could be one of the most important and underreported facts to his tenure. The rate of growth of Federal spending has fallen significantly during the Obama presidency.
Most Americans, both right and left, would probably be surprised to learn that Dwight D. Eisenhower was in office the last time federal government spending grew this slowly.
This is important for two reasons. First, it highlights the aggressively misleading tone of the Romney campaign’s efforts to mischaracterize the President. One would have to think there might be some pushback among reasonable people who feel they’ve been tricked.
Second, the public might be more accepting of additional stimulus measures to grow the economy.
As any economist would tell you, Gross Domestic Product is calculated with the following equation:
C (consumer spending) + I (investment) + G (government spending) + Net Exports (exports – imports).
Forcefully slowing on of the primary drivers to GDP naturally makes growing the economy at an increasing rate considerably more difficult.