A few statistics tell the facts: between 2007 and 2012 GNP fell by 11 per cent in real terms and 20 per cent in nominal terms, while domestic spending fell by almost 25 per cent in real terms and almost 30 per cent in nominal terms.
Ben S Bernanke: Semiannual Monetary Policy Report to the Congress Testimony by Mr Ben S Bernanke, Chairman of the Board of Governors of the Federal Reserve System, before the Committee on Financial Services, US House of Representatives Washington DC, 13 July 2011. Chairman Bernanke presented identical remarks before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate on July 14, 2011.