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The past two days have seen two positive surprises in economic data. Yesterday, the gross domestic product came in at 2.8 percent growth, significantly better than consensus expectations of 2 percent. This morning, payrolls jumped by 204,000 workers, against median estimates of 163,000.
Now imagine how much better the underlying economy might be if the federal outlays were not contracting.
What’s that you say? Isn’t government spending out of control?