The New York Times > AP > Business > Economic Growth Revised Up on Strong Exports

Just a question, what part of the increase in GDP is due to expansion of government spending? What part of that is due to Iraq? Is there such thing as a "non-governmental GDP" number? and which direction is it going? I'd bet that the if you subtracted government out of the GDP numbers, it would actually be much smaller gains (1 percent anyone?) Massive spending by the Feds in Iraq and on homeland security is driving the GDP growth. Is it bad for the economy? Probably not, but in the longer run, there will be consequences.

The Fed is hedging against inflation by raising interest rates. However if the "non-governmental" GDP is flat, wouldn't that slow growth in that sector? Shouldn't we be wanting inflation to ease the debt load in DC?