Remember the Times Academics Told Us the Economy Would Collapse Without Government Spending?

Government Spending needed for growth?

First, an Overview of What We Saw Recently

Also see  Which President Wins? Looking at Some Politics Connected with Today’s American Labor Market

Before addressing the topic of govt spending and the performance of the economy and equity markets, a brief review of recent GDP figures seems in order.

GDP came in at 0.5% annualized Q/Q growth, below expectations of at least 1.5% growth.  The weakness confirms what we’ve been seeing out of housing, retail sales, and a host of other indicators – the first quarter of 2016 was...