1/30/2013

Economy Shrinks in 4th Qtr, Experts Shocked...Again!

Posted by Brian
H/T to The Drudge Report

The holiday season is historically the time of year that retail stores ensure that they turn a profit for the year.  Specifically, "Black Friday", the day after Thanksgiving, is given that moniker for the reason that the red ink on their books goes into the black.
Therefore, you would expect that the fourth quarter would produce some of the largest growth in the economy due to holiday buying sprees. Nay, nay.
The latest report from the Commerce Department shows that the economy shrank 0.1% in the fourth quarter.  What is the Dem response? That this is the "best-looking contraction in U.S. GDP you'll ever see." Excuse me? The spin is that this is a positive?  If this were a Republican administration, they would be screaming bloody murder!
What these so-called experts fail to take into account is that both business and the consumer have little confidence in the fiscal policies of Barack Obama. People are being tighter with the money that they still have.  Businesses are putting off hiring, or are failing to reinvest in their companies in the form of machinery, materials, etc.  People are unsure of what is around the corner.  And for good reason: millions of Americans saw a decrease in their paychecks on their first paycheck of the new year due to an increase in the Social Security tax, which Obama and the media skillfully hid to the public.
To be fair, economists are starting to predict a potential new recession due to out-of-control federal spending, of which Obama and the statists want to increase even more, and more new taxes and federal mandates on business in the pipeline due to ObamaCare.
I wonder how many more times that the media will report that experts are "shocked" at the state of the economy given the disastrous economic policies of Obama and his imperial presidency.
The dumbing down of America continues.

GDP Shows Surprise Drop for US in Fourth Quarter  
Published: Wednesday, 30 Jan 2013 | 8:11 AM ET

The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.

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.

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.
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