Economic Insights – December 2012

With the election behind us, the outlook for the economy is coming into focus.  President Obama won a second term by 3 percent of the popular vote.  Meanwhile, Democrats gained two seats in the Senate and the GOP held onto a comfortable majority in the House.  As such, the status quo prevailed.

For business decision-makers, the key point is that federal spending relative to GDP, which peaked at a post-World War II high of 25.2 percent immediately after the recession officially ended, is still at an unusually high 22.8 percent.  Moreove.....