Posted on 05/30/2025 7:30:07 PM PDT by SeekAndFind
The truth is that the GDP was really in negative growth for 4 years.
GDP has a specific definition:
GDP = (C)onsumption + (G)overnment Spending + (I)nvestment + (Exports - Imports)
It’s nearly impossible to get weak GDP with $2T deficits. The sheer magnitude of G can catch up to the historically majority of C. The mega surge in Imports, as one can see in the equation, is what drove GDP negative.
Those Imports will return to normal, but Govt Spending will be down via all the firings. Inflation on the imports won’t really serve to drive C because it gets normalized by inflation — since GDP is real GDP meaning inflation adjusted.
But your overall point has merit in that without the enormous deficit surge past x years to counter the virus we would not have +GDP.
Local news is trying to spin this as negative. But TARRIFFS!!!
The Economy is not booming, Food prices are still high, fuel is down a little, overall costs for good are still high and trending up...Still waiting on that $5000 Doge rebate...
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