Anyone remember the “summer of recovery?” Yeah, didn’t think so — that was when Obama and Biden tried to make us all believe the American economy had recovered. It reminds me of the simpleton bumper sticker slogan of “Osama bin Laden is dead and GM is alive” — well something like that, so hard to recall all the lies and false narratives.The Obama administration took a big hit in the area of economic recovery yesterday – but that’s not important. Obama is off to Minnesota to talk about the very troubling issue of climate change.
As reported by Fox News, America’s economy shrank at a drastic 2.9 percent annual rate in the first quarter, a far more alarming picture than ones painted in two previous government estimates — including one that actually claimed modest growth.Fox says the new figure released Wednesday by the Commerce Department is nearly three times lower than last month’s preliminary estimate of 1 percent shrinkage — at the time the worst three-month performance since 2009 — and far greater than the 0.1 percent growth estimate in April.
So what does this mean? It means the first quarter Gross Domestic Product (GDP) growth of our nation went DOWN almost 3 percent in the first three months of the year.
Fox continues, in keeping with the climate change meme, the winter weather referred to as the polar vortex is getting the blame. Regardless, this figure represents the biggest difference between second and third estimates since 1976 — and could indicate far greater problems than bad weather.Previously on these pages I outlined a conservative economic growth policy program, which you can review here. Fox News contributor and economist Peter Morici said there were several factors that can help explain away the lousy performance. But he said there are reasons for concern. “Businesses scaled back their investment, and that is a bit foreboding. They just don’t believe the president’s ballyhoo about this being a breakout year.”
As expected, the White House downplayed the drop and instead focused on the future:
Hey Jason, we aint buying’ it. We are heading to a horrific economic armaggeddon because the Federal Reserve can’t just keep printing money to sustain a failing economy. And of course that’s what is keeping the Dow Jones Industrial average at artificial high numbers.
“First-quarter GDP was revised down today, largely reflecting a re-estimation of consumer spending on health care, which was substantially lower than originally reported, as well as exports, which were below the initial estimates,” said Jason Furman, chairman of the Council of Economic Advisers, which counsels President Obama on the economy. “The GDP data can be volatile from quarter to quarter; a range of other data show a more positive picture for the first quarter, and more up-to-date indicators from April and May suggest that the economy is on track for a rebound in the second quarter.”
The economy grew at a 2.6 percent pace in the final three months of 2013 — holiday season– and some economists are optimistic that the poor performance in January, February and March was a mere blip, said Fox News. Data such as employment, manufacturing and services sectors point to a sharp acceleration in growth early in the second quarter. Macroeconomic Advisers recently forecast the economy will grow at a 3.6 percent annual rate in the April to June period, according to The Wall Street Journal. Of course that would bring about the six-month period to a modest 0.7% GDP growth — yeehaw!
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 1 percent rate. It was previously reported to have advanced at a 3.1 percent pace. Exports declined 8.9 percent, instead of 6 percent, resulting in a trade deficit that sliced1.5 percentage points off GDP growth.You’d think six years into Obamanomics we’d have better economic numbers — but then again, it’s all the fault of George W. Bush, Republicans, and al-Maliki and the polar vortex.