Government spending and crowding out

The Congressional Budget Office (CBO) in the US has just revised a forecast it made for the effect of the government deficit and debt on the crowding out of investment. They were taken to task for figures which seemed to overstate the relationship, which had given ammunition to some commentators who are in favour of severe cutbacks in government expenditure. … Continue reading

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Rise in US unemployment starts to slow

The US economy lost 539,000 jobs in April and the unemployment rate rose from 8.5% to 8.9%, according to the Bureau of Labor Statistics on Friday. This means that since the recession began in December 2007, a total of 5.7 million jobs have been lost. Overall private sector employment fell by 611,000 but was slightly offset by a rise in … Continue reading

Posted by Nigel Tree | Comments Off on Rise in US unemployment starts to slow