Pethokoukis, Economics, U.S. Economy

The one economic chart that will make both the left and the right angry


This is an update of a Political Calculations chart I’ve run before. In short, it suggests the Fed’s QE bond buying program prevented tax-hike driven austerity from causing a 2013 recession. So a little something to please and bug everyone in there.

Some of the right will hate it because it shows the Fed giving the economy a boost. Then again, it does show tax hikes rather than sequester spending cuts are why the economy didn’t do better this past year.

For folks on the left, the chart comes down in favor of more Yellenanke Fed monetary stimulus and against fiscal austerity.

Follow James Pethokoukis on Twitter at @JimPethokoukis, and AEIdeas at @AEIdeas.

5 thoughts on “The one economic chart that will make both the left and the right angry

  1. QE seems designed to inflate the economy until the biggest bubble of all time bursts, causing chaos and paving the way for everything the left wants. That’s why they don’t seem to mind 80 billion a month to Wall Street. Or maybe they just trust our Community Organizer in Chief to know what he’s doing and recognize that he’s following the Alinsky playbook.

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