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What confounds the GDP growth rates is that Government spending increases GDP. But it doesn't increase wealth or prosperity for anyone except the apparatchiks. So reducing government spending may reduce GDP but increase wealth and prosperity--particularly if it rids government of the the excess employees who write regulations and think up stuff for normal people to do in their spare time. If you factor out the huge increases in government spending over the last four years and ask how the regular economy did, the real GDP has fallen. All that promiscuous spending accomplishes in terms of the deficit is to pay people to do useless or harmful stuff so that they can pay a portion of that in taxes. A losing proposition at best.
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