First Quarter GDP Revised to Show Economy Shrunk by 2.9%

Jun 26, 14 First Quarter GDP Revised to Show Economy Shrunk by 2.9%

Posted by in Economics, Featured

From the Commerce Department, we get to see the effects of American Marxism on our economy.  The mix of incompetence, soft totalitarianism, aggressive bureaucracies, environmental war on success, and a general disdain for capitalism can be seen in all its glory in the new 1st quarter GDP numbers. Here’s the rundown from the Commerce Department: Real gross domestic product — the output of goods and services produced by labor and property located in the United States — decreased at an annual rate of 2.9 percent in the first quarter of 2014 according to the “third” estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2013, real GDP increased 2.6 percent. The GDP estimate released today is based on more complete source data than were available for the “second” estimate issued last month. In the second estimate, real GDP was estimated to have decreased 1.0 percent. With the third estimate for the first quarter, the increase in personal consumption expenditures (PCE) was smaller than previously estimated, and the decline in exports was larger than previously estimated (for more information, see “Revisions” on page 3). The decrease in real GDP in the first quarter primarily reflected negative contributions from private inventory investment, exports, state and local government spending, nonresidential fixed investment, and residential fixed investment that were partly offset by a positive contribution from PCE. Imports, which are a subtraction in the calculation of GDP, increased.   Real GDP declined 2.9 percent in the first quarter, after increasing 2.6 percent in the fourth. This downturn in the percent change in real GDP primarily reflected a downturn in exports, a larger decrease in private inventory investment, a deceleration in PCE, and downturns in nonresidential fixed investment and in state and local government spending that were partly offset by an upturn in federal government spending. The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.3 percent in the first quarter, the same increase as in the second estimate;...

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Federal Deficit for May

Jun 25, 14 Federal Deficit for May

Posted by in Economics, Featured

As a nation, we are still running massive deficits.  In May, the federal government overspent by $129 billion. In Keynesian economics, a $436 billion dollar deficit for the first 8 months of the fiscal year would be known as a stimulus. Yet, all this spending, does little to nothing for those of us not on the...

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Fourth Quarter GDP from 2013 Revised Down

Mar 01, 14 Fourth Quarter GDP from 2013 Revised Down

Posted by in Economics, Featured

The Department of Commerce revised the 4th quarter GDP from 2013 to 2.4% from 3.2%. Here’s the takeaway line: Also contributing to the slowdown: a larger decrease in federal government spending and downturns in housing investment and in state and local government spending. Federal spending decreased only in the tens of billions.  If that is all that is propping up this economy, then the private sector is truly in bad shape. By the way, 2013 was such a banner year for economic growth, that GDP accelerated at a brisk 1.9%. With all the programs, all the deficit spending, all the welfare, that is the best the Harvard and Princeton educated Democrats could do. Obama’s Marxist policies have failed and it is high time we return to free market principles. Or we continue the leftist course and get more of...

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President Pushes another $302 Billion Shovel Ready Stimulus

Feb 26, 14 President Pushes another $302 Billion Shovel Ready Stimulus

Posted by in Economics, Featured

One might almost think it was 2009 again. If you remember, before my blog’s database blew up and I lost two years of posts, I covered Obama’s Recovery Act (The Stimulus) in depth.  Furthermore, if you remember, just as Obama promised that you could keep your insurance if you liked it, he said the Stimulus would build roads and bridges and be shovel ready. In fact, here he is, saying it.   Of the $800 billion or so in Stimulus dollars, only 5% were sent to the Department of Transportation to fix our roads and bridges. Here is Recovery.gov’s official figures: Obama and the Democrats basically spent the 2009 Stimulus on everything but roads and bridges. At HHS, money was thrown almost exclusively at welfare programs: Next, Obama and the Democrats rewarded the teachers who supported them with $94 billion. Then there was the Department of Labor, which received $66 billion, which mostly went towards unemployment benefits. The Department of Agriculture was given $54 billion to expand the food stamp rolls. Then and only then.  After all the Democrat’s friends and allies were rewarded, did the Transportation Department get funding at the level of $40 billion. To put that funding in perspective, HUD received over $13 billion to expand Section 8 Housing so your neighborhood can now resemble Detroit’s smoldering ruins. In case you haven’t gotten the point, President Barack Obama will not use $300 billion in new funds to fix our roads and bridges. He lied about it in 2009, he lied about health care in 2010, and he will divert it to Democratic partisans in 2014. He isn’t trustworthy on this subject. Oh, and you can read the White House propaganda piece here. And as a bonus, to sell his new Stimulus, the White House includes a picture of the President in a...

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When Does a Recovery Become a Failure?

Feb 02, 14 When Does a Recovery Become a Failure?

Posted by in Economics, Featured

The Marxist inspired policies of President Obama and the Communist Party of America (formerly the Democratic Party) have failed to return employment levels to those of the often blamed Bush. A local baseball star once said, “They keep saying this kid has potential.  At some point he needs more than potential, he needs to get some hits.” This isn’t a recovery.  It is just extended misery. Oh, and that Bush guy, hasn’t been President for six years now. Obama still blames Bush for the economy, but somehow in two years, we defeated the Kaiser and in 4 years, Tojo and Hitler.  Yet, in six years, Marxism can’t return employment to pre-recession...

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Budget Deficit for August is $147 Billion

Sep 14, 13 Budget Deficit for August is $147 Billion

Posted by in Budget, Economics, Featured

Even though this will be the first year that our budget deficit under President Obama has been below the trillion dollar mark, there is really nothing to celebrate if one is intellectually honest and fair. Remember the how breathless the Democrats and the press were when G.W. Bush’s deficit reached $400 billion in his last year of office?  It was a national disaster.  It was reckless spending.  It was pretty much Bush’s fault. So, now, here we are in the fifth year of the Obama administration, and the budget deficit for fiscal year 2013 stands at $755,345 billion through August and will likely top $800 at the end of September.  And, had Obama not been caught off guard by the Sequester Deal, (a deal he said in the debates with Romney would never be implemented), our deficit would stand at a trillion dollars. If deficit spending was in anyway tied to economic health, the United States would be a paradise on earth.  Yet, unemployment still, under Obama, stands at over 7% and most jobs created this year are part-time, dead end endeavors. So, what have to show for another blockbuster deficit?  Millions who aren’t try to work, a national addiction to welfare, a jobless rate above 7%, and dearth of full-time jobs. Top down government planning of the economy failed in the Soviet Union.  Who thought it would work here? Here are the numbers from the Treasury...

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