Obama Economy Moving at 0.1 Percent

Four Years And $5.8 Trillion Later, Obama Presides Over An Anemic Economy – And Barely Mentions It Anymore


SHOT: In Obama’s Second Inaugural Address, Obama Told Americans That “An Economic Recovery Has Begun.” OBAMA: “This generation of Americans has been tested by crises that steeled our resolve and proved our resilience. A decade of war is now ending. An economic recovery has begun. America’s possibilities are limitless, for we possess all the qualities that this world without boundaries demands: youth and drive; diversity and openness; an endless capacity for risk and a gift for reinvention.” (President Barack Obama, Second Inaugural Address, Washington, D.C., 1/21/13)

Media Credit: Zerohedge.com

Media Credit: Zerohedge.com

CHASER: U.S. GDP Contracted By 0.1 Percent In The Fourth Quarter Of 2012. “Real gross domestic product — the output of goods and services produced by labor and property located in the United States — decreased at an annual rate of 0.1 percent in the fourth quarter of 2012 (that is, from the third quarter to the fourth quarter), according to the ‘advance’ estimate released by the Bureau of Economic Analysis.” (“Gross Domestic Product, 4th Quarter And Annual 2012 (Advance Estimate), U.S. Department Of Commerce Bureau Of Economic Analysis, 1/30/13)

  • The Bleak GDP Report Comes A Day After The Conference Board Index Of Consumer Confidence Plunged To Its Lowest Reading In 14 Months And Its Third Straight Decline. “An increase in Social Security taxes is leaving Americans with less take-home pay — and a more negative outlook for the U.S. economy. The Conference Board said Tuesday that its index of consumer confidence plunged 8.1 points in January from December to 58.6. That’s the lowest reading in 14 months and the third straight decline.” (Martin Crutsinger, “US Consumers Less Optimistic After Tax Increase,” The Associated Press, 1/29/13)
  •  “Obama Didn’t Have Anything To Say” In His Inaugural Address “About What His Reelection Campaign Said Was The Most Important Issue, Jobs.” “Obama didn’t have anything to say Monday about what his reelection campaign said was the most important issue, jobs. Again, an inaugural address is not historically the place for that kind of programmatic detail. But, the economy is a key variable in the 10-year test — how will Obama’s speech be remembered a decade from now.” (John F. Harris and Alexander Burns, “Obama’s Big Risk: The Words He Didn’t Say,” Politico, 1/23/13)

FOUR YEARS AND ANOTHER INAUGURATION LATER, WHAT ECONOMIC RECOVERY?

“The Surprising Decline Will Draw Fresh Scrutiny” To Claims Of Economic Recovery. “The initial estimate for the fourth quarter will be revised twice going forward, but the surprising decline will draw fresh scrutiny to an economic recovery that many thought had finally solidified, positioning the U.S. to make major economic gains in the coming year.” (Peter Schroeder, “In Surprise, GDP Shrinks By 0.1 Percent In Fourth Quarter,” The Hill’s On The Money, 1/30/13)

  • CNN’s Christine Romans: “Let me put that in perspective for you, that decline – the first decline since 2009 – and it shows the economy slowed dramatically from the third quarter, when you had economic growth of 3.1%, and it’s dramatically slower than a year ago when you had 4% growth.” (CNN’s “Starting Point,” 1/30/13)

This Is The First Economic Contraction Since The End Of The Recession. “The U.S. 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.” (Christopher S. Rugaber, “U.S. Economy Shrinks 0.1 Pct., 1st Time In 3½ Years,” The Associated Press, 1/30/13)

  • The Transition From The Third Quarter To Fourth Quarter Was A “Sharp Slowdown.” “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.” (Christopher S. Rugaber, “U.S. Economy Shrinks 0.1 Pct., 1st Time In 3½ Years,” The Associated Press, 1/30/13)
  • “Subpar Growth” Has Resulted In Job Gains That Are “Barely Enough To Reduce The Unemployment Rate.” “Subpar growth has held back hiring. The economy has created about 150,000 jobs a month, on average, for the past two years. That’s barely enough to reduce the unemployment rate, which has been 7.8 percent for the past two months.” (Christopher S. Rugaber, “U.S. Economy Shrinks 0.1 Pct., 1st Time In 3½ Years,” The Associated Press, 1/30/13)

Exports Fell At A 5.7 Percent Annual Rate, The Biggest Decline Since The First Quarter Of 2009. “A drop in sales overseas also slowed the economy last quarter. Exports fell at a 5.7 percent annual rate, the biggest decline since the first three months of 2009. That led to a widening of the trade gap that reduced GDP by another 0.25 percentage point.” (Shobhana Chandra, “Economy Unexpectedly Shrinks As U.S. Defense Spending Slumps,” Bloomberg, 1/30/13)

  • FLASHBACK: In His 2010 State Of The Union Address, Obama Promised To Increase Exports. OBAMA: “Third, we need to export more of our goods. Because the more products we make and sell to other countries, the more jobs we support right here in America. So tonight, we set a new goal:  We will double our exports over the next five years, an increase that will support two million jobs in America.” (President Barack Obama, Remarks By The President In state Of The Union Address, Washington, D.C., 1/27/10)

The Contraction “Could Spur Fears Of A New Recession…” “The contraction, coming against a backdrop of tightening fiscal policy, could spur fears of a new recession and create an urgency for policymakers to deal with outstanding budget issues.” (Lucia Mutikani, “Growth Buckles On Smaller Inventories, Weak Government,” Reuters, 1/30/13)

  • “Economists Say A Growth Pace In Excess Of 3 Percent Would Be Needed Over A Sustained Period To Significantly Lower High Unemployment. The Economy Has Struggled To Hold Above A 2 Percent Growth Pace.” (Lucia Mutikani, “Growth Buckles On Smaller Inventories, Weak Government,” Reuters, 1/30/13)

Under Obama, The National Debt Has Increased By $5.8 Trillion, An Increase Of 55 Percent. (U.S. Department Of The Treasury, TreasuryDirect.gov, Accessed 1/30/13)

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