Kasz216 on 17 June 2012
You were right in that I misread the chart.
However, you're wrong when you say government spending drives growth. Government spending drives GDP, because it's part of the equation.
It doesn't create growth in most cases though because the government mostly takes on ventures that are unprofitable.
As you can see... Government spending.... doesn't really match up with GDP growth.
Taxes receipts do... but they stay pretty consistant with GDP growth no matter what the tax rate actually is! I forget the name of it. Laffer Curve maybe?
As for those "Big increases before the crash."
That was because of bubbles... which are what causes the crashes.
Depression's are like manic depressives.
There is a Boom before a Bust.
