Incredible relationship. Does this mean the unemployment rate declines when the government is not in our way and does not spend frivolously our money (click on the chart to enlarge it)? (Note: government spending as % of GDP is the blue line. The unemployment rate is the red line).
George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager
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2 comments:
Another interpretation is in recessions the denominator (GDP) goes down and spending for unemployment compensation, Medicaid, food stamps and other counter-cyclical safety-net programs goes up.
Agree. George
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