Over at PostEverything.
Bonus for OTE’ers: here’s an update of a figure I made awhile ago tracking Eurozone GDP, government spending (both in real terms), and unemployment. What I find revealing here is the fairly clear–for this sort of thing–initial increase in public spending to offset the downturn and the subsequent stabilization of GDP and unemployment. Then, spending prematurely flattens and both real GDP and unemployment reverse course.
Obviously, many more moving parts here, some of which I discuss in this chapter for a volume edited by Tom Palley where this figure first appeared (see chapter 7). Also, in the US case, at this point you’d see declining gov’t spending and pretty sharply declining unemployment, but that’s partly a result of diminished automatic stabilizers as the recovery takes hold.
Finally, as I stress in the WaPo, growth is necessary, not sufficient. I yield to no one in my emphasis of that point in the context of the US recovery, which for many people still doesn’t feel like much of a recovery at all.