An act of economic strangulation: Why US GDP declined by almost 3% in the first quarter

Washington Times ^ | 07/01/2014 | Richard Rahn

[SeekAndFind]

Do you know why the U.S. economy shrank almost 3 percent in the first quarter of this year? When the news of the dreadful gross domestic product (GDP) number came out last week, many were surprised, but none were more surprised than the folks in the Obama administration. Many of their supporters had been saying this was the year of a real economic recovery.

The quick reaction was to blame the bad GDP numbers on the weather, and it is true that much of the country did have record cold temperatures, but in all likelihood the weather was only a minor factor. (It is rather ironic that the president blames the bad economy on the cold weather, while at the same time he is running around the country saying we have to spend many more tax dollars to prevent warmer weather a hundred years from now. Misplaced priorities?) The excuse-making by the president reminded me of how the rulers of the Soviet Union used to blame bad economic news on the weather — 70 years of bad weather.

However, serious economists such as professor Casey Mulligan of the University of Chicago have better explanations for the downturn. Mr. Mulligan has carefully documented both the explicit and implicit new taxes in Obamacare, many of which came into effect during the first quarter of this year. An implicit tax is a reduction in benefits going to workers, which reduces the rewards for working. Mr. Mulligan argues that Obamacare adds “about six points to the marginal tax rate faced, on average, by workers in the economy . Let’s not be surprised that, as we implement a new law that taxes jobs and incomes, we are ending up with fewer jobs and less income.”

[Vaduz]

Another gift of socialism.

[Oldeconomybuyer]

bookmark

[Jeff Chandler]

I imagine the American people blame Bush for this. Sigh . . .

[Texas resident]

Implement a new law that taxes jobs and income, we are ending up with fewer jobs and less income.

Boiled down, this is it.

Wonder why no repubs could garner the courage to say this before Hillary/obamacare was passed?

[FatherofFive]

Do you know why the U.S. economy shrank almost 3 percent in the first quarter of this year?

Eventually you run out of other people's money.

Socialism fails ever time it is tried.

[Joe Boucher]

Stupid people should be about tired of the dog ate my homework excuses of this dumb mookabooker in the white hut.

[eyeamok]

GDP has CONTRACTED every single quarter for over 30 years once you subtract out Government Deficit Spending.

Why Do so-called News AGencies REFUSE To PRINT THE WHOLE TRUTH??

[KeyLargo]

One more town run by Democrat thieves in a Democrat run County and a Democrat run State.

ILLINOIS

Harvey faces financial crisis, other cities to follow?

Posted: Jul 01, 2014 9:37 PM CST Updated: Jul 02, 2014 2:20 AM CST
By Mike Flannery, FOX 32 News Political Editor - bioemail

Cities across Illinois may face financial crisis

CHICAGO (FOX 32 News) -

The treasurer of south suburban Harvey told FOX 32 News the city is running out of cash to pay its bills.

“I’d say yes, we’re getting short on cash. Absolutely,” said Treasurer Gloria Morningstar.

It’s among dozens of Illinois communities on the verge of financial collapse, because of mismanagement and economic decline.

Angry aldermen claimed Mayor Eric Kellogg and his aides hid details of the growing crisis.

“We must start addressing these issues. We can’t just keep acting like they don’t exist,” said Alderman Keith Price.

Harvey and its former comptroller were accused of fraud last week by federal regulators. The city has more than $26-million in unpaid bills.

FOX 32’s Mike Flannery has MORE.

http://www.myfoxchicago.com/story/25921234/financial-crisis-on-the-horizon-for-several-cities-across-illinois

[Mr. Jeeves]

FATCA is the single most anti-American citizen piece of legislation I have seen in my lifetime.

But it's a good litmus test - any representative who isn't loudly demanding its immediate repeal is a friend of tyranny, and deserves neither votes nor support.

[dead]

It just one bad idea after another, overlapping and compounding each other. It’s getting harder and harder to pretend that this is just monumental incompetence rather than deliberate destruction of our economic system.