Posted on 05/29/2015 12:29:44 PM PDT by Kaslin
The White House today downplayed news that the economy contracted 0.7 percent during the first quarter of the year, arguing “the most stable components of GDP” were growing quite nicely.
The new number was a downward revision of the previous estimate that GDP had increased by a mere 0.2 percent.
From White House Council of Economic Advisor Chairman Jason Furman:
Today’s downward revision to GDP growth was entirely accounted for by revisions to inventory investment and net exports, with other changes being small and neutral on balance. The first-quarter slowdown was the result of harsh winter weather, tepid foreign demand, and consumers saving the windfall from lower oil prices. The combination of personal consumption and fixed investment, the most stable components of GDP, has grown 3.4 percent over the past four quarters. This solid long-term economic trend complements the robust pace of job growth and unemployment reduction over the last year.
Well, all of this is technically true. Furman is too good an economist to start making stuff up, though at this point it must be tempting. But here’s the issue: A strong economy takes hits and keeps on growing, even if at a slow pace for a quarter. Good things make up for the bad. That’s not what’s happening here.
Whatever the excuse making, the economy CONTRACTED. Something’s wrong. Moreover, growth in the fourth quarter of 2014 was a dismal 2.2 percent, and growth in the current quarter – the second of 2015 – is expected to come in at about two percent as well.
We’re at six and a half years. Folks, this is the Obama economy. Annual growth rates averaging a little bit above two percent, which is pathetic by historic standards. And years after the recession ended.
Mr. Furman can go about plucking the strands of good news from his data charts all he wants. But the bottom line is clear.
Despite massive debt-financed government spending and near-zero interest rates, the economy is in crummy shape. And it’s not Bush’s fault.
this is bad folks. the fed has pumped trillions into the economy, borrowing costs are almost zero, we should be at 4 or 5 percent growth.
of course the country can turn around, but not with this Kenyan/Marxist/muslim/gay hybrid in the office.
Spinning, cooking the books, lying with stats: that’s how to build the economy.
Take govt spending out of GDP. It’s useless.
The increased costs of 0DontCare more than make up for lower gas prices. Other govt controls stiffle any other growth.
News Bulletin: There will NOT be a recession under the Obama administration. (two consecutive quarters of contraction). The ‘Progressive’ media myrmidons will not allow it.
That is all.
Less real cumulative wealth generated by a growing population where the actual growth comes from obama’s third world sewer pipe being pumped into a freshwater pond.
We knew that he would be worse than Carter, making him the worst president in American history.
And here we are.
Agreed. and in NY/USSR the price is back to 3.09 a gallon.
What about a Repression?
In Kalifornia according to Gasbuddy it’s 3.72 regular per gal
Bingo
I read that environment rules and lack of pipelines are two reasons for the difference. plus the strike hurt. but that seems like a lot!
Actually Gasbuddy has it at $2.971 per gal regular
Unexpected!
Honestly, I’m surprised the Keynesian Kronies have papered over the economic mess for 7 years. They really kept the bs up a lot longer than I thought.
Rather disappointing, because I would have liked to been 7 years into dealing with the collapse than pretending it didn’t happen.
Unmitagated Bullsh!t and lies...as usual.
The most amazing thing was that the incompetent token won re-election; four years after his coronation everyone could see the economy was in shambles, and the media successfully convinced enough voters that 1) the economy was improving or 2) it was Bush’s fault...
The 2012 election was a frightening display of power by the media; Mitt Romney was beaten by a proven failure because he was a rich white guy.
What made it go up 2% in the last quarter of 2014 and contract almost 1% first quarter 2015?
Let’s see... who was Lenin’s Minister of Propaganda...?
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