The Great RecessionIn Charts

September, 2013

Professor Robert KaulfussProf. of EconomicsMiddlesex Community College

BeyondEconomics.org

Employment

Housing

Evolution of Too Big to Fail

Bailouts and Stimulus

• Congress:• $700 Billion: TARP (Bush)• $787 Billion: Stimulus (Obama)

• Fed• Trillions: Direct Support to Financial Industry• Trillions: QE 1, 2, 3 (money printing)

• CNN Bailout Tracker

The Obama Fiscal Stimulus(Keynesian Economics)

GDP = C + I + G + (X – M)

Math for Obama Stimulus• MPC: 1/3 spent, 2/3 saved, Multiplier of 1.5• $14T + 6% over two years = $14.8• $14T – 6% over two years = $13.1• Need: $1.7T• $1.13T X 1.5 = $1.7T (-> $900B -> $787B)

Fed Response: Fed Funds Rate

Fed Response: Quantitative Easing

Fed Response: Quantitative Easing

CBO Federal Deficit Projections

Concord Coalition, 2012

Extended Baseline Assumptions: 1) End Bush tax cuts;2) GDP growth of 4%; 3) Cut defense/other spending by 1/3

Federal Government Debt

Peter G. Peterson Foundation - http://www.pgpf.org/archive/charts

State & Local Government Debt

http://www.pgpf.org/Chart-Archive/0113_state_local_debt

Aging Baby Boomers

Growth in Federal Spending

Energy Prices & Economic Growth

The U.S. Economy

2008-2009: A Sinking Ship

2013: Barely Afloat