Is this what austerity looks like?
The graph above shows Federal spending (in blue) and State and Local spending (in red). The gray shaded area is the NBER's dating of the last recession. The numbers are NOT adjusted for inflation
Federal spending is still than 30% higher than it was in January of 2007. State and Local spending is still around 12% higher than it was in January 2007.
Is this really austerity?
Can government spending really never come down? Isn't it over 2 years since the end of the recession?
Aren't all the people talking about fiscal drag and government spending cuts slowing down the recovery just arguing from accounting identities like they yell at the right wingers for doing?
Can we really run a trillion dollar deficit and bemoan austerity simultaneously?