Sunday, August 2, 2009
Year Over Year Change in Gov't Spending
I've made the Table above by reviewing the U.S. Treasury's Daily Treasury Statement for both the fiscal year to date (FYTD) July 30, 2009 and FYTD July 30, 2008.
On the surface, gross FYTD withdrawls from the Treasury's Federal Reserve Account in 2009 have exceeded that of 2008 by approximately $2T, but to get further perspective, I've made some adjustments that remove the effects of temporary transfers and for Treasury purchases of "financial assets".
After adjusting for these effects, it looks like for the 10 months FYTD "real" Federal spending this year has exceeded that of last year by about $542B ($54B per month). This is sort of quantifying what Mike has been pointing out about the "automatic stabilizers" and the U.S. Gov't contribution to recent GDP.
If this trend continues, it looks like this spending will finish about $700B above last year. $700B would be about 5% of last years approximate $14T U.S. GDP.