GDP not dancing to the 'hope and change' melodies
Not long ago, we thought that the G in GDP was for good, or Good Domestic Product. It's back to Gross, but most people would rather use another word. The latest economic reports are not good:
The U.S. economy grew at its weakest quarterly pace in two years between the months of January and March, government data showed Thursday morning, as consumers and businesses alike showed new caution with their spending.
The nation’s gross domestic product expanded just 0.5 percent on an annualized pace.
Businesses cut back on investments with a severity not seen since the financial crisis.
Not seen since the financial crisis? I guess they mean 2008.
According to this summary, apprehension and caution are now the words.
Frankly, you see this every day, or at least those of us who spend a good chunk of our week talking to business managers and entrepreneurs.
Apprehension is what happens when President Obama projects a disdain for the capitalist system that most of us operate in.
Caution is what happens when the federal government dumps Obamacare and massive regulations on the laps of business people who are trying to keep their enterprises ahead of the game.
The White House was speechless on Friday. They just couldn't understand why Mr. GDP is not dancing to the "hope and change" melodies. They blamed low oil prices and weak foreign demand.
They will probably blame Bush for this rut next week. Why not? This bunch is always blaming Bush even as we celebrate the 7th anniversary of the stimulus they passed