We noted this earlier, but wanted to hit on this point again.
Government’s contribution to GDP is tanking… and we haven’t even gotten to the austerity yet.
Real federal government consumption expenditures and gross investment decreased 7.9 per cent
in the first quarter, compared with a decrease of 0.3 per cent in the fourth. National defence decreased
11.7 per cent, compared with a decrease of 2.2 per cent. Nondefense increased 0.1 per cent, compared
with an increase of 3.7 per cent. Real state and local government consumption expenditures and gross
investment decreased 3.3 per cent, compared with a decrease of 2.6 per cent.
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