A GDP Components Chart

Chad Stone shows what’s happening:

Following Brad DeLong, we’ll call this the ham and eggs recovery. If we fixed housing finance (“investment in equipment and structures”) and had expansionary fiscal policy (“government purchases”) then we’d be doing great. And by the same token if we had some ham then we’d have ham and eggs if only we had some eggs. Karl Smith clarifies that this is a meaningfully different situation from, say, Japan’s endless slide. But it’s still pretty bleak if you ask me.