Once the public-private ratio of GDP approaches 50%, you can expect big business to support government spending, as they are commonly the large beneficiaries. Now, just the federal portion, is a kick above 40%. Wall Street is no tea party. A year or so ago I was watching CNBC and the subject come up about government spending. One of the female host blurted out, ” business likes government spending” Indeed it does ! She was right. Those “conserative” Wall Streeters like the checks coming in and on time.
This week Goldman Sachs issued a report that said the House-approved cuts would hurt the economy in the short term. Of course, all those corporate boys live for is the short term. The Wall Street Journal rebutted them this morning with some recent stimulus facts and figures.