Government Spending and GDP Growth

UPDATE: Obama continued to push claims that we need even more government spending at his press conference on June 8th:

. . . a strategy of "let’s cut more" -- so that you’re seeing government layoffs, reductions in government spending, . . .  then you can get on a downward spiral . . . 

 OECD data available here.  The relationship is still statistically significant even when Ireland and Iceland are removed.