As of now, I am in control here, in the White House

More Obama-Style Economic Growth

Ahh, the Summer of Recovery. I remember it like it was yesterday. It was 2009, and we danced, we sang, and we toasted the stimulus, which was going to pull us off the sickbed and out of the doldrums. And then, the summer went by, and there was no recovery.

For years, we waited. Occasionally, we danced yet again, thinking, at last, this was it, the summer of recovery. But still, it never came.

And then there was 2014. Now, it seemed, the Sumer of Recovery was upon us, despite the fact that the economy actually contracted in the first quarter and never mind that because it was due to the cold weather which BTW was because of global warming you global warming deniers.

And then there was indeed, recovery in the summer. The economy grew at a rate of five percent as the hot months floated by. But then, the Summer of Recovery, as it has done year after year, faded into the Winter of Relapse.

The economy expanded during the last three months of 2014 at an annualized rate of 2.6 percent, the Commerce Department announced today, a middling performance that is the rule, not the exception, for the Obama years. Even with the high growth rates of the second and third quarters, economic expansion for the year is 2.4 percent, just slightly better than the 2.2 percent growth of the previous four years of Obama’s reign.

According to the Wall Street Journal:

The report portrayed a persistently uneven recovery that has yet to fire on all cylinders. Consumers—buoyed by surging job growth and a dive in gasoline prices—boosted spending in late 2014 at the fastest pace in almost nine years. But business investment slowed to a paltry pace, government outlays fell and export growth eased.

What’s more, things aren’t expected to be any better during the first quarter of 2015, the Journal reports.

The White House will make the excuse that we’re doing better than Europe. But Europe is mired in Socialism and has little chance of strong growth. That is, they’ve already achieved the goals Obama is seeking for us. But of course Obama hasn’t yet completely delivered us to our Worker’s Paradise, so we at least, with the right policies, have a shot a doing better. And with gas prices plunging, things should be better.

We should be toasting our Summer of Recovery. If only we could get out of the intensive care unit.

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21 Responses to More Obama-Style Economic Growth

    • He has put his big foot on Alaka, He plans to Veto Keystone.
      At the same time he has nothing on hand to benefit America.
      Yes as planned…
      What amazes me is the number of people still not concerned, aware, bothered at all.
      Companies are afraid to hire due to o care and the economy.
      On top of that the issue of outsourcing of jobs. Yes that routine started way before o stepped in, but it is still going on.

  1. Ed “Dumb as a Bag of Hammers” Schultz says this is the Obama boom economy…. Drudge recently had a note that 35k T.V.’s per Nielsen were tuned into the Ed Schultz Show one night. Out of a nation of 330 million, only 35k T.V.’s were tuned into “Bag of Hammers.” . I’m thinking 35k dogs knocked the remote off the sofa and by a miracle the channel landed on MSNBC…

  2. Keith, if you keep going at this rate you will deserve a chapter in the Treasury of Humor, right up there with Louis Uttermeyer, Ogden Nash, and all those who strive to lighten our day on serious subjects. This toney piece is truly masterful. Thanks!

  3. The key point Keith made was that business are holding back, this means their CapEx spending remains low. This drives the smaller business which then drives employment. Those big businesses know that something is afoot, probably something to do with the Fed and of course the monkey on every ones back ACA. This does not bode well for the rest of the year.

  4. Dont like the numbers? Change the calculations. Add hookers and street imports from mexico and whatever.

    The government has now made a significant change in the gross investment number (I), which now includes research and development (R&D) spending, art, music, film royalties, books and theatre. This change in GDP statistics has not been implemented elsewhere in the world. So the United States is the first to accomplish this rewriting of the GDP number.

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    R&D spending, which shouldn’t even be accounted for as investment, adds a significant amount to the GDP number — it accounts for around 2 percent of U.S. GDP. Art, music, film royalties, books and theatre add another 0.5 percent. 

    Another adjustment has been made to pension accounting. Previously, pension spending was included in GDP. After this adjustment, however, we also look at the “promise” to pay out pensions. So we are talking about imaginary numbers that are now included in GDP. 

    A last example is found in real estate. Commissions, legal bills and expenditures on real estate transactions are included in GDP as “investment.” Obviously these expenditures aren’t associated with real production.

    • Thanks for posting that! I knew they changed the way that GDP is calculated, but I wasn’t aware of all the details. I read at Zero Hedge the other day that GDP now includes intellectual property, but I didn’t know the rest of their little tricks.

      Under the Obummer administration, the GDP numbers are as bogus as the unemployment numbers.

      I went looking for a link and found that text included in this August 2013 article about the new way of calculating GDP:

      http://www.moneynews.com/Advani/GDP-CPI-growth-investment/2013/08/07/id/519128/

      So, basically we have NO growth. What a joke.

  5. Keith, I really enjoy your thoughts at the beginning of your daily
    blog. I have to laugh though, because after giving all the bad news
    about the state of the union, you end willth “have a nice day”.
    It causes me to giggle.