Archives for the day of: October 16, 2011

These plots show more details. Figure 1 shows the components of GDP, Figure 2 shows the private sector gross vs. government funding and Figure 3 shows GDP vs. govt funding.  Government funding has been increasing all the time but the peak of GDP occurred in 2007, fell in 2008 and 2009 and has risen in 2010. In general the private sector gross is four times government spending. The decrease of GDP may be attributed to the money wasted in wars and due to less employment.

Partha

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Three plots are shown in this blog. Here are more plots derived from US Gross Domestic Product data from years 1969 to 2009 available at
http://www.bea.gov/index.htm
plotted in many ways. Figure 1 shows the various components of GDP, Figure 2 shows government spending and GDP keep in step and are roughly proportional to each other. Figure 3 shows that Govt_spending is proportional to the rest of GDP which is the private sector Gross Product. This plot shows that government spending is one quarter of the private sector gross product. In this plot taxes have not been included. If taxes are removed From Government spending, the curves will still remain proportional given that taxes are a small part of government spending. We can conclude that reduction of government funding (the imagined debt crisis) will reduce both GDP and the private sector gross product.

https://pshakkottai.files.wordpress.com/2011/10/gdp-new-plots.docx

is the link to the plots