SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?


To: sylvester80 who wrote (25798)7/14/2008 9:24:00 AM
From: RetiredNow  Read Replies (1) | Respond to of 149317
 
It's coming from government deficit spending. Remember aggregate demand comes from multiple sources:
AD = Business Spending + Consumer Spending + Government Spending - Taxes

Right now, business and consumer spending are coming down, but government spending has been picking up the slack in spades with all these wars and military budget increases. Thus the very large deficits we run. We're now paying the piper.