January 30, 2013
Obamanomics Update: GDP Shows Surprise Drop of 0.1% for U.S. in Fourth Quarter (Updated)Topics:
The AP reports that the U.S. economy unexpectedly posted a "stunning" drop of 0.1 percent in the fourth quarter:
The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.Several quick thoughts come to mind: It must be Bush's fault ... or Sandy's ... or Newtown's ... etc...; quarter 4 included the best shopping season of the year; this is about what the GOP expected would happen if taxes were raised; and just wait until sequestration fully hits the economy.
The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That's a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.
The surprise contraction could raise fears about the economy's ability to handle tax increases that took effect in January and looming spending cuts.
Update: Well, we all knew this was coming - White House blames GDP decline on defense spending decreases, Hurricane Sandy
Translation: It's not Obama's fault ... it never is.
Related: Veronique de Rugy - Government Spending and GDP
Posted by Hyscience at January 30, 2013 7:39 AM
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