Time For A Change Of Economic Policy

This is a chart from today’s Wall Street Journal:

The article reports:

Gross domestic product, the broadest measure of goods and services produced across the economy, contracted at a seasonally adjusted annual rate of 2.9% in the first three months of the year, according to the Commerce Department‘s third reading released Wednesday. That was the fastest rate of decline since the first quarter of 2009, when output fell 5.4%, and matches the average pace of declines during the recession.

GDP was recession-like in the first quarter, although most other data clearly signal that the decline is an outlier,” said Jim O’ Sullivan, economist at High Frequency Economics.

In its third GDP reading, based on newly available data, Commerce said first-quarter consumer spending and exports were even weaker than previously estimated. Consumer spending growth was lowered to 1% from 3.1% previously, largely because health-care spending was weaker than previously estimated.

President Obama has been in office since 2009. His economic policies have been in place for more than five years. It is becoming obvious that those policies have not been effective in reviving the American economy. It is time to send people to Washington who have new ideas that will encourage small business growth and turn the American economy around.

This Is Not What An Economic Recovery Looks Like

Katie Pavlich posted an article at Townhall.com today about the revised Gross Domestic Product (GDP) number from the first quarter of 2014. Initially, the  GDP growth number was listed at just .01 percent. That number has been revised downward to -1 percent. If the GDP number shrinks two quarters in a row, the economy is considered to be in a recession.

It is time for the Obama Administration to examine its economic policies. One way to boost the economy would be to approve the Keystone Pipeline and begin to develop America’s energy resources.

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The Economic Recovery In One Graph

Today’s Wall Street Journal posted a story about the latest Gross Domestic Product numbers. The article included the following graph:

The Wall Street Journal reported that the Gross Domestic Product grew at a seasonally adjusted annual rate of 0.1% in the first quarter of 2014.

The article in the Wall Street Journal explains some of the factors responsible for the low economic growth. Some suggested causes were the extremely cold winter which slowed consumer spending, and the sudden drop in exports, declining at a 7.6% pace in the first quarter.

Obviously, this is not the robust economy the President has been claiming.

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The Revised Numbers Tell A Different Story

On Friday the Washington Times posted a story about the Obama economy. As I am sure you remember, when the government announced that the economy had grown 3.2 percent in the last months of 2013, economists announced that America was well on its way to prosperity. Well, not so fast.

The article reports:

However, according to a revised estimate released Thursday by the U.S. Commerce Department’s Bureau of Economic Analysis, that 3.2 percent figure was a wild exaggeration.

The U.S. gross domestic product (GDP), the broadest measure of our country’s entire economic output, grew no more than 2.6 percent in the fourth quarter — a pitifully low growth rate for the largest economy in the world.

“Averaged across the four quarters of last year, real GDP added 1.9 percent in 2013 from 2012,” said Forbes’ website reported.

So what happened? Part of the reason for the lack of growth is that personal income has not grown for several months, putting a damper on consumer demand. Also, 2013 brought higher taxes to all income levels–some hidden taxes included in ObamaCare like the medical devices tax. High earners also faced increased capital gains taxes, which slowed risk taking and job growth. In February, contracts to buy new homes fell for the eighth month in a row.

Unless something happens to cause President Obama to change his policies, we will have three more years of a non-recovery recovery., If you are not happy with the direction the country is moving in, you need to voice your opinion at the ballot box in November. A Republican Senate may be able to reverse enough of this to get the economy moving.

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Something For Massachusetts Voters To Think About In November

This video was sent to me with a note from a friend who is working to save the fishing industry in New England. The video is from YouTube.

These are the comments included with the video:

 

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Something I Hadn’t Noticed

 When I heard President Obama say that he wanted to cut some government agencies, I thought that was good news. Washington, D.C., is one of the few areas of the country that has experienced job growth since President Obama took office; the government does need to shrink. However, CNS News posted an article yesterday the curbed my enthusiasm somewhat.

Yesterday on his show, Rush Limbaugh pointed out that all of the agencies the President wants to shrink or cut are ‘pro business.’

The article points out:

Let’s look at the types of agencies Obama wants to the authority to shrink, Limbaugh said:

“The Commerce Department, The Small Business Administration, The Office of the U.S Trade Representative, The Export/Import Bank, The Overseas Private Investment Corporation, The Trade and Development Agency.

“Now what do these agencies all have in common?”

“They’re all pro-business…and this is where Obama wants to shrink.  You can even say those agencies might lean to being pro-Republican or pro-Conservative.”

Rush is right. I guess I should have been paying closer attention. Please follow the link to the article at CNS News. The comments are as informative as the article!

 

 

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