US Economy as Bad as It Feels

by Ryan on January 30, 2013

in Economy,Election 2012,Natural Disasters,Politics

Data was released today indicating that the economy contracted 0.1% in the fourth quarter of 2012.  This signals the first time the economy actually shrank since the second quarter of 2009.  If it shrinks in the first quarter of this year, we’ll be officially in a recession.  Regardless, I don’t trust much out of this administration.  I would not be overly shocked if the fourth quarter GDP figure gets revised up to show growth just in time for the up-coming debt and budget negotiations.  We’ll see — the US economy could actually be as bad as it feels.

The White House immediately blamed Republicans, of course.  Yawn.

What’s one more issue for this White House to demagogue this month — in January alone we’ve had fiscal cliffs, gun control proposals, kabuki Benghazi hearings, another attempt at comprehensive immigration reform, etc.!

I swear this administration has ADHD.  Either that, or with all this noise more people will just stop listening — crisis fatigue will eventually wear out the hardiest of us all.

My hunch is that the contraction was due in part to 1) an already anemic economy, 2) Superstorm Sandy devastating the most populated region of the United States for weeks, and 3) a return to bearish consumer spending attitudes after the November election.

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