CHART OF THE DAY: This Chart Explodes A Key Tenet Of The GOP

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A key tenet of the GOP is this: The economy is being held back because businesses are nervous about deficits and taxes, and that if we just removed that uncertainty, businesses would spend and we’d have more jobs.

The tragedy is that that’s a total canard.

One big problem? It’s just not true that businesses aren’t investing or spending.

As this chart from Brad DeLong (via Krugman) shows, business spending (as a share of GDP) is actually pretty high given how much slack (demonstrated via unemployment) is in the system.

To be clear: Business spending as a share of the GDP remains low, but it’s remarkably high given previous patterns.

chart of the day, business investment vs unemployment, june 2011

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